Back when Claude Code had per-token pricing, almost nobody used it because it was clearly much more expensive than the Cursor pricing - $20 a month flat for Cursor vs $5-10 a day for per-token Claude. The incentives manifested in the way both products used tokens - Claude Code has no particular qualms about submitting a gigantic number of tokens and letting Sonnet figure it all out, whereas Cursor puts in a lot of traditional software engineering to figure out the correct minimal context to put in. Now that Claude Code is on a fixed price plan, it strangely doesn't seem like Anthropic is doing anything to optimize the number of tokens consumed by Claude.

I think it's quite plausible that Anthropic is bleeding out ~100/month on token costs per $20/month user, and even at 80% margin, this is just merely breakeven. Their limited capacity also means that they are _losing_ the opportunity to sell the same capacity at a per-token marginal profit. I think the only plausible endgame here is that Anthropic uses the usage data to RL-finetune Claude Code to the point where it is actually worth a $200/month subscription.

Enjoy the $20/month Claude Pro plan while it lasts; I don't really see it sticking around for more than a year at best.