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by Almured 53 days ago
I have been talking about this with a colleague this morning. The 20$ option is just a trail version, I could not do any real work with.

And I wonder whether then subscription model is just a way to create a demand for API. For example, I’m building this portal with the support of an LLM for coding, but then I will need to have an LLM using API token to run the platform giving them additional revenue, a demand that did not exist without the coding I did with the subscription.

1 comments

If interference token costs are truly below api levels (excluding training costs), then a cheaper personal subscription & expensive api is an excellent price discrimination / marketing tool. Charging individual devs what they can pay and large corps what they can pay. Collect more revenue than a flat rate for both.
How are you going to price discriminate profitably when there is effectively no switching cost? Anthropic and OAI are also competing for revenue share in the same market segment.