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
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