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Comment by bigfishrunning

6 hours ago

The cloud providers charge per output token, so aren't they then incentivized to generate as many tokens as possible? The business model is the incentive.

This is only true in some cases though and not others. With a Claude Pro plan, I'm being billed monthly regardless of token usage so maximizing token count just causes frustration when I hit the rather low usage limits. I've also observed quite the opposite problem when using Github's Copilot, which charges per-prompt. In that world, I have to carefully structure prompts to be bounded in scope, or the agent will start taking shortcuts and half-assing work when it decides the prompt has gone on too long. It's not good at stopping and just saying "I need you to prompt me again so I can charge you for the next chunk of work".

So the summary of the annecdata to me is that the model itself certainly isn't incentivized to do anything in particular here, it's the tooling that's putting its finger on the scale (and different tooling nudges things in different directions).