Microsoft to Shift GitHub Copilot Users to Token-Based Billing(wheresyoured.at)
wheresyoured.at
Microsoft to Shift GitHub Copilot Users to Token-Based Billing
https://www.wheresyoured.at/news-microsoft-to-shift-github-copilot-users-to-token-based-billing-reduce-rate-limits-2/
3 comments
> Maybe the root issue is that Anthropic is operating at a loss on their subscriptions
I'm pretty sure all of the LLM subscription businesses operate at a loss when it comes to fixed-price subscription [1]. The price needs to be low enough for regular consumers to consider "sane" (most people wouldn't pay more than 20$ monthly, it fits in well with the rest of the subscriptions people have been trained to tolerate), but usage quotas probably can't (citation needed, but it feels like a reasonable take) be constrained to an amount that would allow for real profit while remaining high enough to be useful (or at least non-obstructive).
[1] https://xcancel.com/sama/status/1876104315296968813
I'm pretty sure all of the LLM subscription businesses operate at a loss when it comes to fixed-price subscription [1]. The price needs to be low enough for regular consumers to consider "sane" (most people wouldn't pay more than 20$ monthly, it fits in well with the rest of the subscriptions people have been trained to tolerate), but usage quotas probably can't (citation needed, but it feels like a reasonable take) be constrained to an amount that would allow for real profit while remaining high enough to be useful (or at least non-obstructive).
[1] https://xcancel.com/sama/status/1876104315296968813
Because they are losing money left and right - thats why
Maybe the root issue is that Anthropic is operating at a loss on their subscriptions and everyone else who tries to add Claude on top of their service will have a though time turning a profit.