Comment by nine_k
12 days ago
I just assume that they realized that they can split the offering, and to charge for the top tier more. (Yes, even more.)
If Claude Code can replace an engineer, it should cost just a bit less than an engineer, not half as much.
Remember there are no moats in this industry - if anything one company might have a 2 month lead, sometimes. We've also noticed that companies paying OpenAI may swiftly shift to paying Google or Anthropic in a heartbeat.
That means the pricing is going to be competitive. You may still get your wish though, but instead of the price of an engineer remaining the same, it will cut itself down by 95%.
But then you pay for the less outrageously subsidized rates of API instead of the a bit less incredibly generous prices of the subscription.
Its not subsidized, in fact, they probably have very healthy margins on Claude Code.
Yeah. If you ignore the negligible fact that some investor may want a return on all that money that is going into capex I am pretty sure you can, Enron style, get to the conclusion that any of those companies have “healthy” margins.
Why do you think that?
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I don't know about you, but I benefit so much from using Claude at work that I would gladly pay $80,000-$120,000 per year to keep using it.
Why would you gladly pay more than what it's worth? It's not an engineer you are hiring, it's AI. The whole point of it was to make intelligent workflows cheaper. If it's going to cost as much as an engineer, hire the engineer, at least you'd have an escape goat when things invariably go wrong.
> an escape goat
Autocorrect hall of famer, there.
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I agree with you, I was just joking.
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What do you use it for, do you have example? For you to be ok with paying 80k to 120k I'm guessing its making you 375-450k a year?
I'm joking, my point is that it's already quite expensive and I don't think it's making anyone money.
Oh come on. That pays for more than 10 fte in some countries
I made this joke with "$1,500-$2000 per month" last night and everyone thought I was serious
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that means customers will pay minimum 2x that much I think
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