Earlier quoted context omitted.
> It will never be cheaper than what it is today. Anthropic is heavily subsidizing. We don't know that for sure—they've dropped prices before: 1. Claude 3 → Claude 3.5/3.7 generation (mid-2024 to early 2025): Haiku went from $0.25/$1.25 to $0.80/$4.00 per MTok — this was actually a price increase for Haiku, but Sonnet stayed flat at $3/$15 while delivering significantly better performance, effectively a price-per-cap…
They're definitely not subsidizing API pricing, can't believe how prevalent that fallacy is on HN of all places. The question is how profitable Claude Code is. Your example 2 is real and major but your example 1 is ridiculous, almost any new model from any company is better at the same price, and how is increasing the price an example of decreasing prices?? BTW, Github Copilot is pricing Opus 4.7 at 2.5x the cost of…
The cost of a thing, is relative to its source costs. They are subsidizing API pricing, if you consider all the costs to provide the service, including all model creation, training, etc costs.
But that doesn't mean they will be more expensive, longer term. The cost of compute will go down as time goes on. Each year it will get cheaper. Same for power requirements, computing density, cooling, and so on.
I remember trying to store and play mp3 files on older computers. I could typically hold a few on a disk, and if I wasn't doing anything else I could play one. Barely. Now you'll be hard pressed to play an mp3 and see the load results in top or what not.
The same will be true of AI in 20 years.