Earlier quoted context omitted.
They don't have enough compute for all their customers. OpenAI bet on more compute early on which prompted people to say they're going to go bankrupt and collapse. But now it seems like it's a major strategic advantage. They're 2x'ing usage limits on Codex plans to steal CC customers and it seems to be working. It seems like 90% of Claude's recent problems are strictly lack of compute related.
Hard for me to reconcile the idea that they don't have enough compute with the idea that they are also losing money to subsidies.
- Selling those requests at less money than it cost to run the compute for those requests (because if you raise price clients go to openai)
The statements are not contradicting each other? They keep subsidizing to try to grow customer base, but they can't serve the customer base they have, they're expecting customer base grows faster than it drops from people bothered with rate limits (it probably will, average user won't hit rate limits enough to change)
Probably expecting a breakthrough in efficiency for compute, or getting enough cash flow (IPO?) to get more compute before it all comes crashing down