alt Hacker NewsThe Claude subscription (i.e. the pro and max plans, not the API) is sold at what appears to be well below cost in what appears to be a blatant attempt to preserve/create market dominance for claude code, destroying competitors by making it impossible to compete without also having a war chest of money to give away.
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jb_briant • today at 8:23 AM
Now dig into copilot plus and how they price the premium requests. The math is not mathing, they are aggressively trying to capture the market.
You’re making a big assumption. LLM providers aren’t necessarily taking a loss on the marginal cost of inference. It’s when you include R&D and training costs that it requires the capital inputs. They’ve come out and said as much.
The Claude Code plans may not be operating at a loss either. Most people don’t use up 100% of their plan. Few people do. A lot of it goes idle.