Comment by Aurornis
25 days ago
> but when the market corrects and the prices will get closer to API prices
I think it’s more likely that the API prices will decrease over time and the CC allowances will only become more generous. We’ve been hearing predictions about LLM price increases for years but I think the unit economics of inference (excluding training) are much better than a lot of people think and there is no shortage of funding for R&D.
I also wouldn’t bet on Claude Code staying the same as it is right now with little glitches. All of the tools are going to improve over time. In my experience the competing tools aren’t bug free either but they get a pass due to underdog status. All of the tools are improving and will continue to do so.
> I think it’s more likely that the API prices will decrease over time and the CC allowances will only become more generous.
I think this is absolutely true. There will likely be caps to stop the people running Ralph loops/GasTown with 20 clients 24/7, but for general use they will probably start to drop the API prices rather than vice-versa.
> We’ve been hearing predictions about LLM price increases for years but I think the unit economics of inference (excluding training) are much better than a lot of people think
Inference is generally accepted to be a very profitable business (outside the HN bubble!).
Claude Code subscriptions are more complicated of course but I think they probably follow the general pattern of most subscription software - lots of people who hardly use it, and a few who push it very hard can they lose money on. Capping the usage solves the "losing money" problem.