It's unclear how much OP's company was spending. The article gives a figure of $100k/month per employee.
replyBut even $200/month is worth shaving if it doesn't generate value.
$100k/month per employee?
replyum.
Corporations pay API rates.
replySo what, if they're cutting it, it has propagated to the last bean counter that the roi isn't there.
replyThis takes some doing and now is the time where it's dawning on the finance departments.
> So what,
replySo it's not $200 a month but it can easily reach $200 a day, and unless you're a startup playing with monopoly money the maths don't work
I use Opus 5.5 heavily but only spend around $800/week at API rates. I mean, I say "only"... That's a lot in absolute terms, but trivial compared to my salary and EASY worth it.
replyAnd someday I hope to understand why they do that. CEO: "Let's see, I can pay $200/month for Bob's tokens, or I can pay $2000/month or so, and then hope he doesn't screw up and rack up a seven-figure bill. The service is the same either way. Hmm."
replyIt's not like they can't decide to pay API or subscription rates. Subscriptions aren't possible for >150 person companies.
replyIs there something in the ToS that says you can't give each of your employees a personal $200/mo subscription... and if they happen to use it at work, well, that's their business?
replyEven if so, it might be worth spinning up a separate LLC for each division, given what they are charging for the API.
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replyBesides that the article states quite high numbers, budget is budget in these companies.
replyYou had budget for your normal salaries, for externals and now suddenly you have a few millions additional.
What do you do? You compensate.
Business people doing business things.