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by nine_k5 hours ago |
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upvoteby elzbardico4 hours ago|
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But then you pay for the less outrageously subsidized rates of API instead of the a bit less incredibly generous prices of the subscription.
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upvoteby eldenring4 hours ago|
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Its not subsidized, in fact, they probably have very healthy margins on Claude Code.
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upvoteby elzbardico56 minutes ago|
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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.
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upvoteby phi-go4 hours ago|
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Why do you think that?
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upvoteby johndough1 hours ago|
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DeepSeek had a theoretical profit margin of 545 % [1] with much inferior GPUs at 1/60th the API price.

Anthropic's Opus 4.6 is a bit bigger, but they'd have to be insanely incompetent to not make a profit on inference.

[1] https://github.com/deepseek-ai/open-infra-index/blob/main/20...

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upvoteby DANmode29 minutes ago|
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> they'd have to be insanely incompetent to not make a profit on inference.

Are you aware of how many years Amazon didn’t turn a profit?

Not agreeing with the tactic - just…are you aware of it?

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upvoteby noosphr2 hours ago|
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Because if you don't then current valuations are a bublle propped inflated by burning a mountain of cash.
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upvoteby falcor842 hours ago|
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That's not how valuations work. A company's valuation is typically based on an NPV (net present value) calculation, which is a power series of its time-discounted future cash flows. Depending on the company's strategy, it's often rational for it to not be profitable for quite a long while, as long as it can give investors the expectation of significant profitability down the line.

Having said that, I do think that there is an investment bubble in AI, but am just arguing that you're not looking at the right signal.

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upvoteby cies2 hours ago|
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And that's OpenAI's biz model? :)
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upvoteby almosthere3 hours ago|
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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%.

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upvoteby co_king_35 hours ago|
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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.
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upvoteby gchamonlive5 hours ago|
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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.
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upvoteby toyg4 hours ago|
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> an escape goat

Autocorrect hall of famer, there.

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upvoteby gchamonlive4 hours ago|
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Scapegoat, got it. Can't blame the autocorrect though... I honestly thought it was spelled like that, which is a shame since I've been studying English my entire life as a second language.
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upvoteby ilikepi1 hours ago|
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There's a name for this sort of phenomenon...

https://eggcorns.lascribe.net/english/242/escape-goat/

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upvoteby _aavaa_4 hours ago|
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At least that misunderstanding didn’t cause a nuclear accident: https://practical.engineering/blog/2025/4/15/when-kitty-litt...
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upvoteby gchamonlive3 hours ago|
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Luckily these strayed goats weren't irradiated
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upvoteby co_king_35 hours ago|
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I agree with you, I was just joking.
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upvoteby gchamonlive5 hours ago|
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Oh now I see... Joke's on me then I guess :D
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upvoteby enobrev4 hours ago|
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It wasn't clear to me that this was a joke either. I assume the same for others since the post is grayed out.
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upvoteby rahkiin5 hours ago|
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Oh come on. That pays for more than 10 fte in some countries
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upvoteby co_king_35 hours ago|
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I made this joke with "$1,500-$2000 per month" last night and everyone thought I was serious
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upvoteby nine_k5 hours ago|
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I know people who burned several hundreds a day and still were finding it worth it.
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upvoteby co_king_35 hours ago|
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Were they actually making money though? A lot of the people on the forefront of this AI stuff seem like cult leaders and crackheads to me.
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upvoteby sanswork4 hours ago|
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I'd pay up to $1000 pretty easily just based off the time it saves me personally from a lot of grindy type work which frees me up for more high value stuff.

It's not 10x by any means but it doesn't need to be at most dev salaries to pay for itself. 1.5x alone is probably enough of an improvement for most >jr developers for a company to justify $1000/month.

I suppose if your area of responsibility wasn't very broad the value would decrease pretty quickly so maybe less value for people at very large companies?

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upvoteby co_king_34 hours ago|
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I can see $200 but $1,000 per month seems crazy to me.

Using Claude Code for one year is worth the same as a used sedan (I.E., ~$12,000) to you?

You could be investing that money!

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upvoteby sanswork3 hours ago|
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Yes, easily. Paying for Claude would be investing that money. Assuming 10% return which would be great I'd make an extra $1200 a year investing it. I'm pretty sure over the course of a year of not having to spend time doing low value or repetitive work I can increase productivity enough to more than cover the $13k difference. Developer work scales really well so removing a bunch of the low end and freeing up time for the more difficult problems is going to return a lot of value.
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upvoteby kadushka4 hours ago|
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I would probably pay $2000 a month if I had to - it's a small fraction of my salary, and the productivity boost is worth it.
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upvoteby co_king_34 hours ago|
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It's *worth it* when you're salaried? Compared to investing the money? Do you plan to land a very-high-paying executive role years down the line? Are you already extremely highly paid? Did Claude legitimately 10x your productivity?

edit: Fuck I'm getting trolled

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upvoteby kadushka4 hours ago|
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I'm serious - the productivity boost I'm getting from using AI models is so significant, that it's absolutely worth paying even 2k/month. It saves me a lot of time, and enables me to deliver new features much faster (making me look better for my employer) - both of which would justify spending a small fraction of my own money. I don't have to, because my employer pays for it, but as I said, if I had to, I would pay.
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upvoteby mewpmewp23 hours ago|
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I am not paying this myself, but the place I work at is definitely paying around 2k a month for my Claude Code usage. I pay 2 x 200, for my personal projects.

I think personal subs are subsidized while corporate ones definitely not. I have CC for my personal projects running 16h a day with multiple instances, but work CC still racks way higher bills with less usage. If I had to guess my work CC is using 4x as little for 5x the cost so at least 20x difference.

I am not going to say it has 10xed or whatever with my productivity, but I would have never ever in that timeframe built all those things that I have now.

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upvoteby cdelsolar2 hours ago|
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I don't know why you keep insisting that no one is making any money off of this. Claude Code has made me outrageously more productive. Time = Money right?
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upvoteby knodi5 hours ago|
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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?
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upvoteby co_king_35 hours ago|
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I'm joking, my point is that it's already quite expensive and I don't think it's making anyone money.
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upvoteby numpad05 hours ago|
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that means customers will pay minimum 2x that much I think
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upvoteby Der_Einzige3 hours ago|
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STFU right now because the more you bring this up the more likely it'll happen.

Similarly, STFU about the stuff that can give LLMs ideas for how to harm us (you know what I'm talking about, it's reptilian based)

The whole comment thread is likely to have been read by some folks at Anthropic. Already a disaster. Just keep on with the "we hate it unless it gets cheaper" discourse please!!!

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