Anthropic: Claude Code users hitting usage limits 'way faster than expected'

https://www.theregister.com/2026/03/31/anthropic_claude_code_limits/

Anthropic admits Claude Code users hitting usage limits 'way faster than expected'

: Unexpected quota drain prompts complaints, breaks automated workflows

The Register
Over reliance on LLMs is going to become such a disaster in a way no one would have thought possible. Not sure exactly what, who, when, or where.. Just that having your entire product or repo dependent on a single entity is going to lead to some bad times…

> on a single entity

Contrary to the popular opinion here, there are other services beyond Claude Code. These usage limits might even prompt (har har) people to notice that Gemini is cheaper and often better.

On-premise LLMs are also getting better and likely won’t stop; as costs go up with the technical improvements, I would imagine cost saving methods to also improve

I still think it's basically unavoidable that most people who might pay for api access will end up on-prem.

Fixed costs, exact model pinning, outage resistant, enshittification resistant, better security, better privacy, etc...

There are just so many compelling reasons to be on-prem instead of dependent on a 3rd party hoovering up all your data and prompts and selling you overpriced tokens (which eventually they MUST be, because these companies have to make a profit at some point).

If the only counterbalance is "well the api is cheaper than buying my own hardware"...

That's a short term problem. Hardware costs are going to drop over time, and capabilities are going to continue improving. It's already pretty insane how good of a model I can run on two old RTX-3090s locally.

Is it as good as modern claude? No. Is it as good as claude was 18 months ago? Yes.

Give it a decade to see companies really push into the "diminishing returns" of scaling and new models... combined with new hardware built with these workloads in mind... and I think on-prem is the pretty clear winner.

These big players don’t have as big of a moat as they like to advertise, but as long as VC wants to subsidize my agents, I’ll keep paying for the $20 plan until they inevitably cut it off