Microsoft to Shift GitHub Copilot Users to Token-Based Billing

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4 pointshansmayer3 comments

I wonder why having the usage limits for subscriptions was not enough. I see that Opus 4.7 now takes 7x usage so admittedly the limits would go over very fast. In the end this will end up costing more for users but I understand that they cannot operate on loss.

Maybe the root issue is that Anthropic is operating at a loss on their subscriptions and everyone else who tries to add Claude on top of their service will have a though time turning a profit.

Because they are losing money left and right - thats why

> Maybe the root issue is that Anthropic is operating at a loss on their subscriptions

I'm pretty sure all of the LLM subscription businesses operate at a loss when it comes to fixed-price subscription [1]. The price needs to be low enough for regular consumers to consider "sane" (most people wouldn't pay more than 20$ monthly, it fits in well with the rest of the subscriptions people have been trained to tolerate), but usage quotas probably can't (citation needed, but it feels like a reasonable take) be constrained to an amount that would allow for real profit while remaining high enough to be useful (or at least non-obstructive).

[1] https://xcancel.com/sama/status/1876104315296968813

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