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Tell HN: Anthropic expires paid credits after a year

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Tell HN: Anthropic expires paid credits after a year

#1
> Your organization “xxx” has $xxx Anthropic API credits that will expire on September 03, 2025 UTC.

>

> To ensure uninterrupted service, we recommend enabling auto-reload for your organization. When enabled, we’ll automatically add credits when your balance reaches a specified minimum. You can enable auto-reload in the Anthropic Console.

Re: Tell HN: Anthropic expires paid credits after a year

#2
Unfortunately that's what one gets for offloading intelligence into a XaaS (Intelligence as a Service?, we already got IaaS though).

The only hope is that "the market / invisible hand" forces actors to implement more forgiving billing mechanisms and rules via competition or eventual diminished demand. I wouldn't hold my breath though.

Anyways, a very good reason to not depend that much on these tools. Especially on a personal level (i.e. if your programming/moat/skill depends on these tools and you go broke for a time, you can get seriously fucked).

Re: Tell HN: Anthropic expires paid credits after a year

#5

“Oops, we burned through your money, please give us more by this date” - are you serious? Unfortunately they basically can do whatever they want with credits. https://www.anthropic.com/legal/credit-terms

Gets "funnier" when you think those credits can be burned in useless tokens (i.e. they have almost negative skin on the game regarding outcomes and incentives to maximize token usage).

Re: Tell HN: Anthropic expires paid credits after a year

#6
Accounting rules. If the credits last indefinitely, any unused credits cannot be counted as revenue. Ran into this at my last company when we signed a big contract and gave them hundreds of thousands of dollars in non-expiring credits. Our accountant went nuts when we told him.

Re: Tell HN: Anthropic expires paid credits after a year

#7

Accounting rules. If the credits last indefinitely, any unused credits cannot be counted as revenue. Ran into this at my last company when we signed a big contract and gave them hundreds of thousands of dollars in non-expiring credits. Our accountant went nuts when we told him.

Correct, then you effectively become a holder of someone else’s money, which creates all kinds of legal trouble (you need to put that money into a separate, third party’s account that shields it from bankruptcy etc).

What they could do is automatically refund the credits to the original account as soon as they expire, but that would mean it’s not the deposit but every API request that would be counted as revenue, which creates a whole lot of other complications. Let alone the fact that refunding after a year is problematic as the original payment methods may have expired, changed, and that you’re still the holder of someone else’s money until the credits are used.

Bottom line: this is industry practice, but given how much flack Anthropic has been getting about the lack of transparency lately, this just adds more fuel to the fire and could be defused by some additional explanation from Anthropic’s side.

Re: Tell HN: Anthropic expires paid credits after a year

#9
post #3

So does OpenAI (last I checked) which I sadly learned the hard way.

I lost my free credits they were giving away a couple years back, but when you pay they make it fairly clear they will expire. I see no issues here from any provider doing this, as long as it is made clear.

Re: Tell HN: Anthropic expires paid credits after a year

#10
post #2

Unfortunately that's what one gets for offloading intelligence into a XaaS (Intelligence as a Service?, we already got IaaS though). The only hope is that "the market / invisible hand" forces actors to implement more forgiving billing mechanisms and rules via competition or eventual diminished demand. I wouldn't hold my breath though. Anyways, a very good reason to not depend that much on these tools. Especially on a…

AIaaS seems like the right term: https://azure.microsoft.com/en-us/resources/cloud-computing-...
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