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But if you use the $100 a month Claude Max plan, and you would use it to the weekly limit by going full ‘agentic coding’ (so almost no human in the loop) you would use an amount of tokens that would cost you more than $1000 at API-pricing.

If I watch 600 movies every day on my netflix subscription I am using more energy than I pay them for. Obviously everyone is like me. Therefore they are losing money overall.

Wait, their (netflix) earnings say they made a profit last quarter. But my calculations were waterproof!

Probably anthropic are not net positive, but they are not spending 10x what people pay them for tokens.

So are we assuming here that LLMs won't become more efficient over time? GPT-3 has been a frontier model just a few years ago and it's performance blew everyone's mind at that time. I can now run equivalent LLM on my personal computer. Why can't we expect that after a few years Claude Sonnet level of capability won't be possible to accomplish locally?

I wish that was inversely proportional. The less I pay, somehow it costs them more money.

I’m not going to read this whole article, is that opex??