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by subarctic 343 days ago
Why is the API usage-based billing so much more expensive than the $20/month tier? Like you can literally burn through $20 of usage in a day with the same amount of usage that you get included with the $20/month plan
2 comments
raincole 343 days ago
Because subscription plans are subsidized by people who don't use it that much. Like gyms.

That being said it will not surprise me if subscribers actually are losing Claude money and only API is profitable.

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_flux 343 days ago
How much people use these APIs? It seems Clause API costs $3 or $15 per 1M tokens (I suppose for different models, it seems difficult to find first-party pricing information), so people who would use these daily would then use a lot more than that?
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