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No, it doesn't cost Anthropic $5k per Claude Code user

martinalderson.com

161–170 of 374 posts

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#161
I have very naive question:

People in comments have assumption that Atropic 10 times bigger than chinese models so calc cost is 10 times more.

But from perspective of Big O notation only a few algorithms gives you O(N). Majority high optimized things provide O(N*Log(N))

So what is big O for any open model for single request?

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#162

Earlier quoted context omitted.

I mean GN has covered the Nvidia black market in China enough that we pretty much know that they run on Nvidia hardware still.

How is this related to the inference , may I ask? Except for some very hardware-specific optimizations of model architecture, there's nothing to prevent one to host these models on your own infrastructure. And that's what actually many OpenRouter providers, at least some of which are based in US, are doing. Because most of Chinese models mentioned here are open-weight (except for Qwen who has one proprietary "Max" mo…

I mean sure, but in terms of cost per dollar/per watt of inference Nvidia's GPUs are pretty up there - unless China is pumping out domestic chips cheaply enough.

Also with Nvidia you get the efficiency of everything (including inference) built on/for Cuda, even efforts to catch AMD up are still ongoing afaik.

I wouldn't be surprised if things like DS were trained and now hosted on Nvidia hardware.

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#163

A huge number of people are convinced that OpenAI and Anthropic are selling inference tokens at a loss despite the fact that there's no evidence this is true and a lot of evidence that it isn't. It's just become a meme uncritically regurgitated. This sloppy Forbes article has polluted the epistemic environment because now theres a source to point to as "evidence." So yes this post author's estimation isn't perfect bu…

> A huge number of people are convinced that OpenAI and Anthropic are selling inference tokens at a loss despite the fact that there's no evidence this is true Theres quite a lot of evidence, no proof I'd agree, but then there's no absolute proof I'm aware to the contrary either, so I don't know where you're getting this from. The two pieces of evidence I'm aware of is that 1) Anthropic doesn't want their subsidised…

But a simple assumption that Anthropic runs a normal large MoE LLM (which it almost certainly does) suggests that the actual price of running it (mostly energy) is pretty small.

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#164
> Cost remains an ever present challenge. Cursor’s larger rivals are willing to subsidize aggressively. According to a person familiar with the company’s internal analysis, Cursor estimated last year that a $200-per-month Claude Code subscription could use up to $2,000 in compute, suggesting significant subsidization by Anthropic. Today, that subsidization appears to be even more aggressive, with that $200 plan able to consume about $5,000 in compute, according to a different person who has seen analyses on the company’s compute spend patterns.

This is the relevant quote from the original article.

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#166
post #161

I have very naive question: People in comments have assumption that Atropic 10 times bigger than chinese models so calc cost is 10 times more. But from perspective of Big O notation only a few algorithms gives you O(N). Majority high optimized things provide O(N*Log(N)) So what is big O for any open model for single request?

N*Log(N) can be approximated to O(N) for most realistic usecases.

As for LLM, there is probably some cost constant added once it can fit on a single GPU, but should probably be almost linear.

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#167

What people don't realize is that cache is *free*, well not free, but compared to the compute required to recompute it? Relatively free. If you remove the cached token cost from pricing the overall api usage drops from around $5000 to $800 (or $200 per week) on the $200 max subscription. Still 4x cheaper over API, but not costing money either - if I had to guess it's break even as the compute is most likely going idl…

Cache definitely isn't free! We're in a global RAM shortage and KV caches sit around consuming RAM in the hope that there will be a hit.

The gamble with caching is to hold a KV cache in the hope that the user will (a) submit a prompt that can use it and (b) that will get routed to the right server which (c) won't be so busy at the time it can't handle the request. KV caches aren't small so if you lose that bet you've lost money (basically, the opportunity cost of using that RAM for something else).

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#168

A huge number of people are convinced that OpenAI and Anthropic are selling inference tokens at a loss despite the fact that there's no evidence this is true and a lot of evidence that it isn't. It's just become a meme uncritically regurgitated. This sloppy Forbes article has polluted the epistemic environment because now theres a source to point to as "evidence." So yes this post author's estimation isn't perfect bu…

[deleted]

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#169
post #79

Earlier quoted context omitted.

Nobody is running 10s of trillion param models in 2026. That's ridiculous. Opus is 2T-3T in size at most .

Do you have any clues to guess the total model size? I do not see any limitations to making models ridiculously large (besides training), and the Scaling Law paper showed that more parameters = more better, so it would be a safe bet for companies that have more money than innovative spirit.

> I do not see any limitations to making models ridiculously large (besides training)

From my understanding, the "besides training" is a big issue. As I noted earlier[1], Qwen3 was much better than Qwen2.5, but the main difference was just more and better training data. The Qwen3.5-397B-A17B beat their 1T-parameter Qwen3-Max-Base, again a large change was more and better training data.

[1]: https://news.ycombinator.com/item?id=47089780

Re: No, it doesn't cost Anthropic $5k per Claude Code user

#170
post #161

I have very naive question: People in comments have assumption that Atropic 10 times bigger than chinese models so calc cost is 10 times more. But from perspective of Big O notation only a few algorithms gives you O(N). Majority high optimized things provide O(N*Log(N)) So what is big O for any open model for single request?

It's a good question. Costs will be lumpy. Inference servers will have a preferred batch size. Once you have a server you can scale number of users up to that batch size for relatively low cost. Then you need to add another server (or rack) for another large cost.

However I think it's fair to say the cost is roughly linear in the number of users other than that.

There may be some aspects which are not quite linear when you see multiple users submitting similar queries... But I don't think this would be significant.

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