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AI subscriptions are a ticking time bomb for enterprise

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Re: AI subscriptions are a ticking time bomb for enterprise

#412

Earlier quoted context omitted.

> shows you don't understand how Copilot's previous billing worked Having used it for > 4 years and having paid for it for > 2.5 years, I think I know full well how it's previous billing worked. > You could make one request which used tens of dollars worth of tokens, obviously not the intended usage pattern and obviously unsustainable. Gee, thanks Mr. Obvious! It never occurred to me this was the reason Microsoft rec…

Why would you extrapolate from Microsoft's very poor setup to tokens in general then if you know it's stupid and not representative?

? How TF is it not representative, if it provides interface to literally ALL the major models?? What are you talking about mate?

Re: AI subscriptions are a ticking time bomb for enterprise

#413
Subscription costs per person going from $20 to $100, may be expensive and potentially unbudgeted expenditure, but it's hardly ruinous.

Many big organisations are already on per token pricing purely due to privacy concerns.

Once workflows are in place it becomes easier to see what level of "intelligence" is adequate. It no longer becomes important to necessarily keep that workflow on the next state of the art model if the new cheaper models does a good enough job given ongoing improvements. Gemma 4 I'd say is equivalent to 2.5 flash in my opinion/workflows.

Re: AI subscriptions are a ticking time bomb for enterprise

#414

Brad Gerstner confirmed that tokens aren't being sold at a loss. Whatever the formula, API + Subscription split, the companies are making a profit on net token sale. They maybe running at loss after all the salaries and stock comp, but tokens are in profit now.

so because some1 said something it becomes true ?

/o\

Re: AI subscriptions are a ticking time bomb for enterprise

#415

Although I agree with the sentiment in the article, it smells very LLM~y. Especially the sections and punchlines. Such as: `That is not a rounding error. That is a line item that needs its own budget code.`

> it smells very LLM~y

Every Time I See This Header

Followed By Another Header

I just know it's been LLMed xd also if you click around this page it's pretty obvious

Re: AI subscriptions are a ticking time bomb for enterprise

#416
post #377

Earlier quoted context omitted.

I’ve worked, for a long time professionally, in the open model space for 3 years and up to 2 months ago I would have agreed with you. But it’s empirically not the case today. These models (combined with a good harness) have dramatically improved in both power and performance. Gemma 4 was a major improvement is self-hostable local models and Qwen-3.6-A34B is a beast, and runs great on an MBP (and insanely well on a 40…

For specific use cases, absolutely, a harness and other techniques help (this is literally what I'm working on). But GP was talking about general use. Over-promising is a very stupid thing. Nobody will value the intermediate steps. Nobody will value all the effort because they will always compare us with frontier models made with billions and we will become a running joke. So please stop.

Over-promising is what the frontier companies are doing. I'm not pretending open weight models are gonna do your homework and pay your taxes and remember your wife's bday with a super personalized gift. I'm just saying that they seem pretty good for what they are. There's no promise being made here.

Re: AI subscriptions are a ticking time bomb for enterprise

#417

Earlier quoted context omitted.

They are kinda trying to replace figma. That could be valuable.

IMO the LLM technology is so poor when it comes to converting text descriptions to visual layout that I can't imagine it could possibly succeed as part of a paid design product.

Have you seen the outputs from OpenAI's latest image model? I believe it is called "Image 2.0", is just a few weeks old and - to my untrained eyes - the outputs including text are astonishing.

Re: AI subscriptions are a ticking time bomb for enterprise

#418

Earlier quoted context omitted.

Why would you extrapolate from Microsoft's very poor setup to tokens in general then if you know it's stupid and not representative?

? How TF is it not representative, if it provides interface to literally ALL the major models?? What are you talking about mate?

No other provider works like Copilot did with "premium requests". Usage limits (Codex/Claude Code), which are inherently linked to tokens, are the most common. Some providers like Amp charge you per-token like Copilot is moving to.

Microsoft's previous model was not linked to tokens at all. Complete anomaly among coding agent providers. It's not representative of token economics at large. Claude Code recently announced increased limits. Codex does regular limit refreshes.

Tokens are pretty damn abundant even though they're not bargain basement cheap yet.

Re: AI subscriptions are a ticking time bomb for enterprise

#419

Earlier quoted context omitted.

Free is always better.

Linux is free too, but it hasn't replaced Windows despite lot of people explaining why it should be better. Moreover local AI is not free. You'll need proper hardware to run it which you have to pay extra for it.

but Free Windows would outsell priced Windows if it were offered open source, a la LLMs
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