Bought the pay wall because I couldn't sleep... What an insane house of cards
https://www.wheresyoured.at/anthropic-and-openai-have-begun-the-subprime-ai-crisis/
Hello premium customers! Feel free to get in touch at ez@betteroffline.com if you're ever feeling chatty. And if you're not one yet, I'm sorry that I paywalled this, but it took me so much effort and drove me a little insane. Back in September 2024 I wrote about
cursor and replit have introduced rate hikes and opaque limiting despite raising over $1bn in VC... why?
anthropic releases a new model aimed at coding, this model will be hugely popular for anthro's biggest clients, coding apps cursor and replit, who are so popular theyre maxing out anthro's gpu capacity.
so anthro raises the rent specifically targeting enterprise users who heavily rely on caching: coding apps. And the new terms are pinned to long-term contract commitments with money upfront
so anthropic gets to report huge revenue increases and growth by squeezing the startups who now have to start squeezing their users to slow the hemorrhaging.
what happens when a deeply unprofitable company, who is burning money on free/cheap tier users costing way more than they bring in, raises the rent on their biggest client, a wrapper around their services, who is also bleeding cash for the same reason?
Brian Jeffears
Brianna Townsend