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I believe this goes deeper than a simple bait-and-switch. It’s straight out of Silicon Valley’s venture-backed startup playbook: burn money until the world domi
by ozgung 1y ago
I believe this goes deeper than a simple bait-and-switch. It’s straight out of Silicon Valley’s venture-backed startup playbook: burn money until the world dominance. That’s one of the reasons non-US or non-SV startups fail to compete. Not because their products or services are inferior, but because they can’t replicate this aggressive pricing strategy. They don’t have deep enough pockets to survive until reaching billions of users.
For Claude Code and similar services, we’re still in the very early stages of the market. We’re using AI almost for free right now. It’s clear this isn’t sustainable. The problem is that they couldn’t even sustain it at this earliest stage.