Comment by AnotherGoodName
10 hours ago
This is the cost of Anthropics pay by the token plan.
To give an analogy, Anthropics pricing is $0.10 per grain of rice (pay by the token) or;
$20 a month for quarter cup of rice each day (claude pro)
$100 a month for 10 cups of rice each day (claude max 100)
$200 a month for a sack of rice delivered to your door each day.
It's a rather insane pricing scale and here they are paying $50 there because they don't understand the pricing model (which is fair, Anthropics pricing model is crazy). Never pay by the token with Antropic! Only ever use the subscription plans.
At work we pay per token because we use a third party tool (amp) and it is very pricy. OTOH the subscription model is obviously not profitable. It's priced to capture market share, like Uber in 2010. (TBH the token pricing is probably not profitable either.)
From the point of view of a large entreprise, it makes more sense to pay a third party that can itself swap out Claude for Gemini (for example) based on pricing, then to buy subscriptions to one specific tool that is likely to suddenly cost 10x as much when they run out of VC funds. The dynamic is going to be different for individuals and small companies.