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It’s possible that tokens become cheap enough that they don’t need to raise prices to make a profit. The latest opus is 3x less expensive than the previous.
by shepherdjerred 9mo ago
It’s possible that tokens become cheap enough that they don’t need to raise prices to make a profit. The latest opus is 3x less expensive than the previous.
- gpm 9mo agoThen the competitors drop prices though. The current justification for claude code is just that it's an order of magnitude (or more) cheaper per token than comparable alternatives. That's a terrible business model to be stuck in.
- shepherdjerred 9mo agoIf everyone is dropping prices in this scenario then I don’t see how the user eventually gets squeezed. I mean I guess they could do a bait and switch (drop prices so low that Anthropic goes bankrupt, then raises price) but that’s possible in literally any industry, and sees unlikely given the current number of competitors
- gpm 9mo agoTerrible for Anthropic I mean, not the user.