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It is priced incorrectly, but that is intentional. You can't create a tiered paid plan for the whole world that fits everyone. You can't create nuanced extra pl
by Yokohiii 7mo ago
It is priced incorrectly, but that is intentional. You can't create a tiered paid plan for the whole world that fits everyone. You can't create nuanced extra plans to satisfy all the outliers. It's an bet to keep the customers and still having a good margin.
Think of ecom, returns are a big struggle for any large company because they are unpredictable and subject to abuse, shipping fees are just an sophisticated guess to cover that cost. Not a subscription, same mechanics.
The only thing here to criticize is, if it's a good thing to make everything a subscription and disguise the real cost.
- fluoridation 7mo ago>You can't create a tiered paid plan for the whole world that fits everyone. I mean, you can. Electricity is already sold that way. Subscribers with uncharacteristic usage spikes don't get blackouts, they get a slightly larger bill, and perhaps get moved up a tier.
- Yokohiii 7mo agoVery valid. My comment was fixated around the fact that big tech has the addiction to have subscriptions for everything. It's common that you provide generic subscription plans for the masses and supply "call us" custom plans for the specific (usually corporate) needs. If anthropic doesn't provide that or vibe coders are too cheap to do that, then those are issues, but the subscription models are itself valid. It is certainly misleading to a degree, but we've stopped complaining about this a while ago.
- fluoridation 7mo agoIt's pretty stupid because as others in this thread have pointed out it's already not a flat plan. Even from their side it makes zero sense to bill things this way rather than based on usage. It's not like a VPS where your VM shares the hardware, which consumes electricity more or less regardless of what you use the machine for.
- Yokohiii 7mo agoThose yottabytes of VRAM are also consuming electricity constantly.
- fluoridation 7mo agoThe difference being that an LLM request is not an operating system. Since they're compartmentalized and ephemeral, you can very easily distribute requests among your available hardware so that you can switch off machines during periods of low activity.
- jmalicki 7mo agoYour capital costs for buying those machines don't go away.
- fluoridation 7mo agoThat's a problem that already exists in power generation and delivery, and it's already been solved. Bills are sums of fixed terms and variable terms.
- Yokohiii 7mo agoCustom payment schemes are late stage profit generation. It requires hoards of salespeople or an AI that can actually do math. It's just how hyperscaling works. You are not wrong, but in the wrong timeline.
- fluoridation 7mo agoI'm not talking about custom, negotiated service contracts, I'm talking about simply charging people for what they use.
- anonzzzies 7mo ago