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They are willing to tolerate it now, which is quite a switch up from the free for all we had a few weeks ago, and if they aren’t able to tie in this new ~$1500p/m cap to demonstrable productivity and revenue increases then that will be kneecapped even faster

There are plenty of expenses in this order of magnitude that are not tied to direct increases in productivity. I think it may become a serious hiring impediment for companies to be really skimpy on these budgets for example.

There was a time when some employees wanted 1000$ per month for rent, imagine that.

It's absolutely insane, 1500 * 12 is north of 17K dollars, I know that in Google outside of few specific cities and roles.

Getting a 17k bump in salary is good enough to switch, if I was being 17k extra I am more than willing to use my local qwen and hand code most if not all stuff.

Companies can pay for code review tools to make life easier but writing code with AI if it's 10-15% pay cut is just too much.

Everyone is happy right now because this money hasn't been a line item in your salary/benefits.

Imagine 10k yearly AI allowance, I will probably just ask to keep that money.

All the work I do if I was judicious I could do just as much with a 20$ spend or on a local model.

Few tasks need Mythos like models, and if your task does you are already doing too much with AI


I mean we saw this with cloud spending and especially with logging and database read write cost across numerous companies.

It’s a clear pattern in service delivery for software for a while now. Hell for many goods and services in general, like Uber rides themselves.

Start cheap, get some vendor lock in, service provider reduces discounts, consumer notices and then reacts to the price by reducing consumption.


Concern maybe elsewhere, but I like how we have gone full circle.

SpaceX expects to complete its $60 billion acquisition of AI coding startup Cursor roughly 30 days after it begins trading publicly, according to Bloomberg.

Cursor's Composer 2 model was built on Kimi K2.5, who were in turn accused of 'distillation' attacks by Anthropic.

Anthropic now relies on SpaceX for compute demands.


> It paints Costco as some sort of cultural retirement home.

which is fitting since the author used the phase "cheugy" unironically.


> Left unchallenged (court, charge back, whatever) why change course?

They are trying to go public and will get absolutely bitchslapped by SOX.


By whom? Which regulatory body is not completely captured in this administration?


what? Opus 1m has been in place for at least a few weeks for plan users.


> I think the root cause is that Anthropic is capacity constrained so is having to make choices about the customers they want to serve and have chosen people who use Claude Code above other segments.

I think that's part of it, the other part is that OpenClaw is OpenAI IP now, and Anthropic want to allow users to ensloppify the internet through their own features now instead.


> Bundled with it is xAI, which is presumably losing money hand over fist.

But that is surely offset by Twitter, which is doing great business.


wouldn't touch this with a barge pole. Failed company after failed company rolled into the largest IPO ever? No thanks.

Musk is clearly trying to dump his bags on retail before the next recession is confirmed.


> This issue has been automatically locked since it was closed and has not had any activity for 7 days. If you're experiencing a similar issue, please file a new issue and reference this one if it's relevant.

Close.


It’s legalised insider trading. So you can always assume at this point that someone who knows will be cashing out.


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