Comment by nl

> 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.