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Microsoft starts canceling Claude Code licenses

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Re: Microsoft starts canceling Claude Code licenses

#91

Post by mrweasel »

andyfilms1 wrote: post #36
mrweasel wrote: post #28

Earlier quoted context omitted.

Okay, but what if you're not Microsofts size and don't have and R&D budget large enough to fund development of your own models and tools? This is a warning to any company, not building their own AI, that AI assisted development could become really expensive really fast and most likely won't pay off. What Microsoft is suggesting is that the current price is to high, but it's still not high enough for e.g. Anthropic to…

I expect in the next year or so, we'll stop seeing headlines like "Anthropic buys $15b of compute from SpaceX" and we'll start seeing headlines like "Uber's AI department licenses GPT 6.2 as the foundation for their internal model," or something like that. Smaller companies will have departments that distill larger models into something more specifically manageable and useful for them. At least, that's my personal pr…

How would that help with pricing? The cost of hardware is already subsidized to hell and back by investors and that's not dropping costs enough. I'm not concerned about Uber, they are way to big. I'm thinking sub 1000 employees in total and maybe 50 - 100 people in the IT department. Are they just going to be cut off from AI tools, because the cost of running them would ruin the company?

I do think your prediction makes sense, because the AI really isn't the product, it needs to be baked into something and licensing the models saves you the R&D and cost of implementing your own.

Re: Microsoft starts canceling Claude Code licenses

#92

Post by ndesaulniers »

kridsdale1 wrote: post #61
joe_mamba wrote: post #41

Earlier quoted context omitted.

[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.

Good then that Amazon sells it by the 55 gal drum then.

https://www.amazon.com/Passion-Lubes-Natural-Water-Based-Lub...

> This product is out of stock

Ah, shoot, there go my weekend plans. Bummer.

Re: Microsoft starts canceling Claude Code licenses

#93

Post by onlyrealcuzzo »

proxysna wrote: post #25

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…

I rage canceled Claude today.

After 2 weeks of Claude getting progressively worse and worse, today was the final straw.

I don't care if they have a phone app. The model is COMPLETE garbage after you subscribe long enough and they think they've "got you".

I can't code on my phone if the model literally moves in the wrong direction and does the opposite of what I tell it to. If I wanted to make my code worse, I'd just randomly commit garbage. I don't need a mobile app for that.

Re: Microsoft starts canceling Claude Code licenses

#94

Post by boelboel »

HDThoreaun wrote: post #60
uniclaude wrote: post #23

That's very interesting to reconcile with the fact that not too far, Amazon employees feel incentivized to use as many tokens as possible.

"incentivize to use as many tokens as possible" = "Upper management knows people dont like change so we are forcing them to come up with ways to use this thing". It does not mean that management will encourage wastefulness in the future, and it also doesnt mean that token usage from now wont be reviewed in the future. Whats to stop them from dinging your performance in november because you wasted a hundred thousand o…

Makes sense why Anthropic wants to IPO as soon as possible as the growth right now comes from temporary wastefulness. Makes all the investments more risky.

Re: Microsoft starts canceling Claude Code licenses

#95

Post by InsideOutSanta »

QuiEgo wrote: post #39
dsagent wrote: post #26

I think whats funny is that employees were most likely already covering the cost for these tools because they are useful. Companies didn't believe employees were using these tools and now have forced their usage and no longer have the costs subsidized. Similarly companies seem to reward high token usage as a sign of someone willing to play ball with AI and again have forced higher costs on themselves for people rewar…

There is no world where I can put my company’s data through an external site without their express consent and security sign off. I suspect at most companies there’s zero path for people to have been paying for it themselves.

My guess is that at most companies, employees are prohibited from doing this, but not prevented.

Re: Microsoft starts canceling Claude Code licenses

#96

Post by recursive »

kridsdale1 wrote: post #65
gobdovan wrote: post #54

Earlier quoted context omitted.

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.

Sweet. I can get that up to infinity, assuming they're using IEEE-754 division.

Re: Microsoft starts canceling Claude Code licenses

#97

Post by sulam »

lawn wrote: post #43
kristjansson wrote: post #31

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.

I don't understand why people are using the API pricing instead of the Pro/Max subscriptions? What am I missing?

Personally I prefer the API pricing because I feel like I'm not going to get rug pulled on my work. When it comes to personal stuff, I use the shit out of my sub, but it's not making me money.

Re: Microsoft starts canceling Claude Code licenses

#98

Post by [deleted] »

xienze wrote: post #63
thewebguyd wrote: post #51

Earlier quoted context omitted.

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.

[deleted]

Re: Microsoft starts canceling Claude Code licenses

#99

Post by onlyrealcuzzo »

andyfilms1 wrote: post #4

Surely a company as large as Microsoft is actively attempting to build their own models. They couldn't possibly have expected to stake the future of their software development on the conditions of a third party company?

MSFT and Apple are taking the same approach.

The frontier model space costs 1000x as much to develop as the small language models, and is only 1.5 years ahead.

Factually, the frontier models have not paid for themselves. So, if you're MSFT and Apple, you don't need to run in a race where even the winner loses massively.

You can try to train models 1.5 years behind that are highly likely to be profitable, given your market position.

The average person is lagging behind what AI is capable of by 3+ years anyway...

So you can save 1000x on training and 10x on inference and just use SOTA small models.

Why spend $5B training a model that's for sure not going to make $5B (after inference costs) when you can spend $5M building one that WILL make far more than that after inference costs?

Re: Microsoft starts canceling Claude Code licenses

#100

Post by Shalomboy »

sergiomattei wrote: post #78

My impression is they're being cancelled in favor of full internal adoption of Copilot CLI, which has got much better over the past few months.

I'm also a big fan of Copilot CLI, especially after demoing it to a coworker who liked Claude Code.
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