Reality check >Businesses are racking up huge AI usage bills they didn’t expect, with a single employee spending over $150,000 a month on AI tokens. >AI companies are feeling the squeeze that the rampant use of their coding tools is putting on their servers, causing them to jack up usage rates. >The economics of rapidly deploying AI coding tools across companies are looking more questionable than ever. And one telling weather vane of where things are headed comes from Anthropic, which quietly doubled its estimate for how much the average business will end up spending on its Claude Code tool.>organizations with thousands of employees all running their own posses of AI servants, the costs could be exorbitant — are exorbitant, in fact. Some, by their own admission, could be paying human salaries for what they’re spending on coding tools. >Bryan Catanzaro, vice president of applied deep learning at Nvidia, recently told Axios that for his team, the “cost of compute is far beyond the costs of the employees.”>AI companies doing some severe belt-tightening, cutting off free trials and limiting access to their coding models to even paid users, as Anthropic experimented with doing. This week, Microsoft’s GitHub Copilot said it would transition to usage-based billing, effectively forcing users to pay more for the code they crank out.>an MIT study that found that the overwhelming majority of companies saw zero growth in revenue after adopting AI. >Another study found that was creating a new office paradigm of “workslop,” in which AI appears to be generating more work that in reality needs to be fixed by employees down the line, both bogging down workflows and breeding resentment. Yet more studies have shown that AI is actually intensifying work for employees and driving them towards burnout. Play indian games, win indian prizesviberedditors are on the fast track to unemployment
Essentially *all* of these $20 per month, $100 per month and so on plans are just promotion prices and usage-based pricing is inevitable for all services. There is no way that you can support a business model where your users waste million of tokens regenerating an entire subroutine from scratch every time it doesn't compile just so that they don't have to spend a few minutes finding where the missing semicolon is.
>>108760323I pay 20 per month
>>108760382>>108760793you're not a business tho. Your experience is irrelevant
So glad my company switched focus and stopped targeting data center LLM hardware, that shit is crashing.
