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Anthropic is really trying to burn all that goodwill they worked up by raising prices, reducing limits and making it impossible to know what the actual policies
by victorbjorklund 6mo ago
Anthropic is really trying to burn all that goodwill they worked up by raising prices, reducing limits and making it impossible to know what the actual policies are.
- notarobot123 6mo agoBoiling the frog is an art form. You've got to know when to turn up the heat and when to let it simmer.
- sitkack 6mo agoHormussy started it.
- Gigachad 6mo agoDon’t know, I feel like I’ve watched every tech company get through every controversy without consequence. Google when they merged YouTube and Google+, Reddit multiple times, Facebook after countless scandals. Microsoft destroying windows and pushing ads. At the end of the day a solid product and company can withstand online controversy.
- nativeit 6mo agoAt the end of the day, unenforced anti-competition regulations can bulldoze controversies.
- conductr 6mo ago> a solid product and company can withstand online controversy A product with a massive moat. Switching from Claude to another competitor is insanely easy and without much loss of quality. Until they’ve built their moat, burning goodwill is foolish. What’s different is it’s probably required due to the cash that’s being burnt to operate. They can’t afford to keep offering so much for so little revenue.
- baq 6mo agoWould you please think of the shareholders
- sofixa 6mo agoWhat shareholders, Anthropic is a money burning pit. Not to the same extent as OpenAI, but both will struggle hard to actually turn a profit some day, let alone make back the massive investments they've received. Not that they don't bring value, I'm just not convinced they'll be able to sell their products in a sticky enough way to make up the prices they'll have to extract to make up for the absurd costs.
- baq 6mo ago$20B ARR or so reported added in Q1 doesn’t sound particularly bad, they’ll raise effective prices some more while Claude diffuses into the economy, sounds like a money printer. The issue is they’re compute constrained on the supply side to grow faster…
- sofixa 6mo ago> $20B ARR or so reported added in Q1 doesn’t sound particularly bad Unless you compare with the reported cash burn or projected losses. > they’ll raise effective prices some more while Claude diffuses into the economy, sounds like a money printer But the problem is, they have no moat. Even if Claude diffuses into the economy (still to be seen how much it can effectively penetrate sectors other than engineering, spam, marketing/communications), there is no moat, all providers are interchangeable. If Antrhopic raise the prices too much, switch out to the OpenAI equivalent products.
- baq 6mo ago> But the problem is, they have no moat I disagree very strongly with this, both anecdotally and in the data - subscriptions are growing in all frontier providers; anecdata is right here in HN when you look around almost everyone is talking about CC, codex is a distant second, and completely anecdotally I personally strictly prefer GPT 5.3+ models for backend work and Opus for frontend; Gemini reviews everything that touches concurrency or SQL and finds issues the other models miss. My general opinion is that models cannot be replaceable, because a model which can replace every other provider must excel at everything all specialist models excel at and that is impossible to serve at scale economically. IOW everyone will have at least two subscriptions to different frontier labs and more likely three.
- aurareturn 6mo agoAren't they just doing what Hacker News was trying to tell them to do? That AI is useful but not sure if sustainable. Now they're increasing prices and decreasing tokens and you guys are pissed off.
- freedomben 6mo agoI feel this has to be said constantly, though I hate doing it. hn is not a monolith. People here routinely disagree with each other, and that's what makes it great
- aurareturn 6mo agoI'm aware. When I say "Hacker News", I mean a very sizable portion of users who keep repeating the OpenAI collapse imminent opinion.
- ex-aws-dude 6mo agohttps://en.wiktionary.org/wiki/Goomba_fallacy https://en.wiktionary.org/wiki/Goomba_fallacy
- aurareturn 6mo agohttps://en.wikipedia.org/wiki/Argument_from_fallacy https://en.wikipedia.org/wiki/Argument_from_fallacy
- bandrami 6mo agoIf you want LLMs to continue to be offered we have to get to a point where the providers are taking in more money than they are spending hosting them. And we still aren't there (or even close).
- carefree-bob 6mo agoI think this has to be done with technological advances that makes things cheaper, not charging more. I understand why they have to charge more, but not many are gonna be able to afford even $100 a month, and that doesn't seem to be sufficient. It has to come with some combination of better algorithms or better hardware.
- bandrami 6mo agoMaking it more affordable would be very bad news for Amazon, who are now counting on $100B in new spending from OpenAI over the next 10 years.
- philipwhiuk 6mo agoSomeone's going to get burned here that's for sure. This isn't going to end with every person on the planet paying $100 a month for an LLM.
- LtWorf 6mo agoA guy from Meta interviewing at BBC a few years ago claimed that every school child in India was going to have the metaverse VR or they'd be left behind in their education, so every family was certainly going to pony up the money.
- throwthrowuknow 6mo agoSomethings not adding up. Why is Amazon making financial plans for the next decade based on continued OpenAI spending but you’re saying AI providers like OpenAI and Anthropic aren’t even close to being profitable, so how can they last a decade or more? Who’s wrong?
- waysa 6mo agoIt's almost like they want me to switch to the Chinese clones - which they consider malicious actors.
- throwaway613746 6mo ago[dead]