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JamesSwift • yesterday at 7:48 PM • 4 replies • view on HN

Thats... sort of wild, and I would think unsustainable with other offerings available


Replies

swatcoder • yesterday at 8:03 PM

No, that's the whole business model -- the subscription plans are a teaser with mixed-to-low profitability, but they're self-serve, have low support demand, and create a breadth of familiarity and brand attachment. It's a genuinely good deal for individuals and small businesses but represent a subsidized marketing program for Anthropic and OpenAI.

Enterprise sales are where the revenue for the $1T valuations comes from. If they were forced by competition to offer subscriptions to all those organizations, they'd blow up tomorrow.

lycan1917 • yesterday at 7:54 PM

What other offerings? The other providers are either similarly priced for enterprises, or nonstarters for security reasons (there's very real concern in enterprises about hosted open models being modified to covertly inject security vulnerabilities, and it's not cost effective to self-host them.)

gavinray • yesterday at 8:00 PM

ChatGPT does a similar thing

My personal ChatGPT account is a Business account with 2 seats at $30/ea (minimum 2 seats required).

Why? Because for $60 you get ChatGPT Pro, significantly cheaper than the $100 normally required for the next level personal plan!

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rw2 • yesterday at 7:54 PM

no, it works because they are the best. What other offering is there?