Comment by gpm
Then the competitors drop prices though. The current justification for claude code is just that it's an order of magnitude (or more) cheaper per token than comparable alternatives. That's a terrible business model to be stuck in.
Then the competitors drop prices though. The current justification for claude code is just that it's an order of magnitude (or more) cheaper per token than comparable alternatives. That's a terrible business model to be stuck in.
If everyone is dropping prices in this scenario then I don’t see how the user eventually gets squeezed.
I mean I guess they could do a bait and switch (drop prices so low that Anthropic goes bankrupt, then raises price) but that’s possible in literally any industry, and sees unlikely given the current number of competitors