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Comment by robrenaud

8 days ago

If a good SWE is $150/hour, does the model cost actually matter? Surely you'd be willing to spend $10/hour to make that SWE 20% more productive? The model cost is still much less than the salary.

I don’t think any engineers who cost $150/hr are having their productivity moved by 20% depending on a $10/hr gap between models on or near the frontier.

Most of the gains right now come from tooling and process and any big post 2025 language model. The specific model isn’t that important right now.

  • Exactly. And being able to choose your own tools is much more valuable than having a tiny bit better model.

With Claude Code Ultrathink, I used 3 million tokens in 20 minutes. At API prices, that would be around 30$. So 90$/h. Model cost is not that much lower.

  • x40hrs/week * 50 weeks = $180k

    Congrats, now you’re paying an engineer’s salary to make your engineer at best 20% more productive.

    Better to hire another engineer, or two jrs, and build up your in house talent.

But SOTA models used liberally at API pricing is a lot more than $10/hour. You can probably burn $100+/hour with just a single agent, and probably thousands when running agents programmatically, e.g. workflows.