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Comment by nickandbro

5 days ago

Get them addicted then cut them off. Oldest trick in the book.

More of a free trial to those authenticated and qualified with existing payment. Subscription billing is going away for sure though eventually based on the economics. Token “all you can eat” is a capital furnace otherwise.

(I’m highly confident open models will eventually achieve a similar performance benchmark with distillation over time)

  • Yeah that payment scheme sounds like they gear up to shift everyone into API token prices, eventually. Time to convert the existing tokens into software, until then.

  • Subs lose money on individuals to get those individuals to force their companies to pay for the corporate plan. The economics are bad, but so are the economics of grocery stores selling Milk and Bananas at a loss to drive traffic, which they basically ALL do.

    • I pay a lot but barely use it except for some intense days, where the lower plans would have throttled me in like 30 minutes. API billing is still more expensive. If you want to not pay much, go to openrouter and use chinese models. They are cost efficient.