Cost of AI or Revenue of AI - How did we get it wrong?
Summary
Analysis of Claude Fable 5's cost and pricing model, Anthropic's decision to stop including frontier models in subscriptions and move to per-token pricing, and the broader economic implications for AI access and inequality.
Similar Articles
The Unsustainable Subsidy (1 minute read)
An analysis of how Google, OpenAI, and Anthropic are adjusting their AI model pricing strategies as cash constraints and high capex spending drive price increases, ending the era of subsidized AI.
Our AI bills are subsidised, and I don't think many people have priced in what happens next
A commentary on the subsidized pricing of AI APIs, warning that current costs are below actual expenses and may rise significantly, posing risks to businesses built on these assumptions.
Every AI prompt costs money — and that changes everything
The article argues that the real challenge in AI isn't just building smarter models but making them cost-efficient at scale, highlighting the importance of reducing token usage, improving speed, and optimizing infrastructure.
Pricing, AI and Locked Out from Future
The article warns that current low pricing for frontier AI models is propped up by venture capital subsidies, and advises building systems now before prices rise or quality drops.
The April every AI plan broke (18 minute read)
The article analyzes a series of chaotic pricing and plan adjustments by Anthropic, OpenAI, and GitHub in April, attributing them to the struggle of aligning legacy subscription models with new, high-cost agent usage patterns.