I think that's by design - they're going to IPO soon so if they can get a significant percentage of users to switch from the $200 to the $500, they can 2.5x projected revenue.
For consumers they may as well buy GPUs and run local models. The cost is same over a year or two but infinite token usage, they get to keep the hardware, and local models continue to improve over that time too. I can't justify $200 on SOTA models for a personal subscription after Qwen3.8-27B. And it's only getting better from here.
Yes, either US AI corps reduce the cost of their top tier personal subscriptions down to what people are already paying for other expensive personal apps (e.g. Adobe), so ~$50-100, or open weights are going to eat their lunch very quickly. We're not there yet, as current hardware doesn't allow you to do things like multiple parallel agents, but we'll get there soon enough.
I do not. I had 1 GPU and I had an expensive subscription. I simply cancelled it, and purchased a second figuring if I was going to spend the money anyway I'd rather have something to show for it at the end of the day. I'm not unique or special in my capability to do this. I figure I may as well purchase at least one GPU per year equivalent to what I would have spent on SOTA model subscriptions for that given year.
People keep saying this but it's just patently not true, or at least not apples-to-apples. You can't seriously compare Qwen 3.8 27B to Fable or Astra. Even if local models get better, so will the frontier, and you'll always be at a disadvantage.
Unless you're talking about buying enough hardware to run something like GLM 5.3, in which case the math just doesn't pencil out—the break even point is several years, and you're stuck with hardware that will be outdated well before then.
There are plenty of good reasons to use local models, but none of them are financial, at least for the vast majority of users.
You don't need SOTA. You need a model that can accomplish your task. Qwen3.8-27B isn't comparable to SOTA, but can I use it and accomplish most of my tasks with? Yup.
The optimal move is to retain the minimal access to SOTA models on the $20 plan, and for anything your local model fails at, use SOTA as the backup for either planning or debugging.
This way you're not actually at any disadvantage in terms of capability. You also don't need an advantage, you need to complete the tasks you care about. Eyes on the prize.
RTX 3090 came out a long time ago and it may be 'outdated' at this point but still banging like a champ for anyone who bought one and becoming increasingly more capable as new models unlock it's potential. Hardware hasn't changed much, but what it can do certainly has.
> You don't need SOTA. You need a model that can accomplish your task.
I completely agree about SOTA, but it's a big leap from "you don't need Fable" to "you can get everything done with local Qwen". As always, it depends. Most LLM users are better off with a subscription (or even API pricing) because they won't use AI heavily enough for the hardware to pay off. Then there's the power users who benefit from larger models (software devs, for example). You can argue that there's a middle ground that would do just fine with local models, but I think this group is vanishingly small.
> The optimal move is to retain the minimal access to SOTA models on the $20 plan, and for anything your local model fails at, use SOTA as the backup for either planning or debugging.
Optimal in what way? If I'm having to run tasks twice because the local model effed it up the first time and I'm resorting to my SOTA "backup", that's a waste of my time and far from optimal.
People said the same about $200 a month. I think the ceiling is probably much higher. Companies regularly spend 10% or more of employee cost on offices, SaaS, equipment. I could see these costs going to 10% of white collar income.
This is missing an important context. And I actually remember this well, because I was saying that too. And the reason I was saying is that $200 plan didn't come with API usage, it was a chat plan.
It made no sense up until they started including API usage. Just as $500 makes no sense now.
> costs going to 10% of white collar income.
There's a permanent and ever lowering ceiling maintained by open weight models. It makes no sense to justify paying 10% of income permanently for something that will get you unlimited local inference for a 6 month subscription cost.
