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Microsoft starts canceling Claude Code licenses

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Re: Microsoft starts canceling Claude Code licenses

#61

Earlier quoted context omitted.

The current thinking is automated agents is what turns this from an industry in the tens of billions to a multi trillion dollar one. So yes you are right on the money, agents stimulate demand for this thing they've built.

[flagged]

There is always a quantity of lubricant that can get any machine moving. Just add so much that you create an all consuming river of lube and watch your thing sail away.

Re: Microsoft starts canceling Claude Code licenses

#63

Cancellation effective June 30. This was a _pilot_ launched in December that accidentally consumed their 2026 yearly target spend on AI! I expect the r/LocalLLaMA guys to be going nuts about this news.

From the article > It was part of an effort to get project managers, designers, and other employees to experiment with coding for the first time. I suspect they weren't as efficient as they could be with token use either. Sounds like they were trying to encourage non-developers to vibe code stuff

I'd argue you have a lot more to worry about with developers as far as token usage goes because they're the ones who know how to rig up these wild workflows where tens of agents simulate an entire software development team. The non-developers are probably going to be sticking more in the realm of iterating via chat.

Re: Microsoft starts canceling Claude Code licenses

#64
post #59
post #44

Earlier quoted context omitted.

To be fair, the cost of software development has always been fairly unpredictable. What may be different is that the cost used to be roughly proportional to man-hours spent, while now the number of agents running in parallel may be less predictable.

> To be fair, the cost of software development has always been fairly unpredictable. Yes, but in a "oops this is gonna take another two months to finish" kind of way, not the "oops this is the 12th time this month 8 developers have burned $2K in tokens in a single day and no one really knows how it happened" kind of way.

We’re all being given belt-loaded machine guns and tossed on to Planet K. We used to pay for the salaries of soldiers, now we have an Ammo Budget.

Re: Microsoft starts canceling Claude Code licenses

#65
post #45

Earlier quoted context omitted.

I get 98.6% cache hits on Claude code. Short of drastic arch changes it’s hard to imagine it getting much better.

98.6% cache hits doesn't distinguish an efficient workflow from an overly chatty linear agent repeatedly reusing the same context. Plus, it says nothing directly that the process has good useful progress per token .

We are all going to be graded by (tickets closed / tokens burned) soon enough.

Re: Microsoft starts canceling Claude Code licenses

#66

Earlier quoted context omitted.

I suspect subscription limits are quite a bit higher than the equivalent tokens their dollar cost could purchase. I similarly feel like I can get a lot done with a $20/mo Claude Pro subscriptions, but also can easily spend $10-20/day at API pricing with similar usage.

Can verify that I've gotten about $400 worth of tokens from my $20 sub.

Now that sounds like a business I’d like to invest in! When’s that Anthropic IPO anyway?

Re: Microsoft starts canceling Claude Code licenses

#68

Feels about right. I've launched an internal demo of Claude Code and Deepseek on the same day and we burned through our monthly allowance for Claude in just over a week, with more than a half of that budget being spent in one day. With DS people are unable to go through that same amount of money in a month, not even close. With that Claude feels like an expensive toy, while DS is a shovel, purely because developers d…

Considered Gemini?

Re: Microsoft starts canceling Claude Code licenses

#69
post #35

Thus does kind of beg the question: If developers are being laid off because AI is better/faster/cheaper or makes all their people 10x or whatever fig leaf, what happens if the required tooling ends up being more expensive? From the investor’s point of view is the drag of employee costs better or worse than a ballooning expense item?

I suppose if it all works out it'll end up way more expensive than the employees the models displaced ever were. These kinds of technologies usually end up as an oligopoly at best, and those players will have a wide moat by then, and the things these models build will be tweaked such that no other model or human being can realistically work on them anymore, and then they can price gouge everyone to the brink of unpro…

At least the models don’t need health insurance, office space, a cafeteria, or have a threat of unionizing.
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