GitHub says it can no longer absorb "escalating inference cost" from it heaviest AI users.
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No, these are the same people who think having a Cloud PC Rental Service is gonna work super well. Jeff Bezos mentioned this idea around, and I cannot even begin to laugh at how terrible such a project would go.Just the basic idea that all code in the world would be generated by 2 or 3 companies' models which require massive data centers to run is so objectively ludicrous. Did none of these people think through the logical conclusion ?
CtCoHUwMoLU it is!It's the same concept that all subscription services use. They bet on a lot of users who don't use it at all, and many who don't use it much to pay for the people who use it constantly.
If enough companies were actually willing to pay a 'steep premium' then there would be no reason for Microsoft (or anyone else) to be losing a single penny on these services.This is insane cope: these price increases are possible because corporations have ventured beyond chatbots and are now pursuing agentic flows at scale. Companies are finding immense value in this and are willing to pay the steep premium for frontier models.
Yesterday the freaking issues list wasn't listing all the issues. How do you break that? In production?!Klarna rehired human customer service reps after firing them all for AI (but they are being offered gig worker jobs).
My team has reported 3 or 4 major GitHub outages in the past two weeks. We’d pay extra for GitHub classic with all the old fashioned uptime and none of the new AI “features.”
Edit for typo
I changed my Creative Cloud plan with Adobe to a lower tier to avoid their AI bullshit, so I forget exactly what the new price I'm paying it now. I think they forced me into a monthly instead of annual.
But it's $600ish a year I think. I feel like the AI level I dumped was $800ish.
Similar tools for professionals are on that level. You can pay about that for Fusion 360's full CAD package for instance.
It's a normal and basic cost for doing business. I don't love subscriptions, but I'll pay them to do my work the way I want/need to do it.
I don't use LLMs, but looking at Claude their best plan is $100 a month, so double my Creative Cloud costs. And okay, again if you're a professional there are costs for getting your work done you just pay.
I guess the question is simple: is $100 enough? Is there a future where pros just pay that kind of cost and use the tools and it's just part of doing business?
Or is it not sustainable still at that cost? Or are there not enough people to pay it?
At this point it feels like almost a best case scenario that people who have genuine use cases for these tools just pay to use them, and the slop dries up because the free spigots get turned off and the people who can't justify it move on.
NVIDIA isn’t saying that they spend more on compute than employees as a signal that costs are out of control. They are saying it in the sense of “the FANUC robots in our factory cost 10x what we pay a worker”
Knowledge workers are heavily leveraging AI and even a couple thousand dollars in compute cost per worker per month is nothing compared to the fully loaded cost of an incremental employee.
Pretty big difference between $20 and $100 so it's hard to know.Guessing that would be a no:
https://meincmagazine.com/ai/2026/04/anthropic-tested-removing-claude-code-from-the-pro-plan/
That was the $20 plan...but odds are with increased demand for the $100 plan, it would lose viability too.
Markets can stay irrational longer than you can maintain your excitement about a bubble bursting.YES!
Folks having to pay for usage means one thing.
The bubble is gonna burst by August 01, October 01 at the latest.
Only use it for important stuff. Like ordering lunch for the c suite.Meanwhile, my workplace just sent out a warning about minimum LLM usage in order to retain a license. This is on top of a warning the other month about over-usage.
So, use it, but not too much. "No, not like that!"
Klarna rehired human customer service reps after firing them all for AI (but they are being offered gig worker jobs).
My team has reported 3 or 4 major GitHub outages in the past two weeks. We’d pay extra for GitHub classic with all the old fashioned uptime and none of the new AI “features.”
Edit for typo
Sadly my work basically requires that I do right now. It actually does make some things a lot less hassle, but I hate to think about how many trees I'm burning daily to "be productive" in the current bubblescapeDon't use AI and don't pay! Follow me for more money saving tips.
Pull requests are still not listing quite properly, either. The Web Platform Test repository is missing half its PRs, still, for example.Yesterday the freaking issues list wasn't listing all the issues. How do you break that? In production?!
Presumably $100/month won't provide enough tokens to meaningfully generate much code, seeing as they were recently experimenting with throttling or whatever recently. They will all go to pay as you go, but to actually generate the amounts of code needed to "10x" entire programs' software output will be a prohibitive cost.I changed my Creative Cloud plan with Adobe to a lower tier to avoid their AI bullshit, so I forget exactly what the new price I'm paying it now. I think they forced me into a monthly instead of annual.
But it's $600ish a year I think. I feel like the AI level I dumped was $800ish.
Similar tools for professionals are on that level. You can pay about that for Fusion 360's full CAD package for instance.
It's a normal and basic cost for doing business. I don't love subscriptions, but I'll pay them to do my work the way I want/need to do it.
I don't use LLMs, but looking at Claude their best plan is $100 a month, so double my Creative Cloud costs. And okay, again if you're a professional there are costs for getting your work done you just pay.
I guess the question is simple: is $100 enough? Is there a future where pros just pay that kind of cost and use the tools and it's just part of doing business?
Or is it not sustainable still at that cost? Or are there not enough people to pay it?
At this point it feels like almost a best case scenario that people who have genuine use cases for these tools just pay to use them, and the slop dries up because the free spigots get turned off and the people who can't justify it move on.
They'll just start/increase the use of China's open-source models, which are "good enough" now and will likely reach parity soon.This should be entertaining!
I'm guessing a lot of people have been using Copilot precisely because the cost has been subsidised. So those people will now jump ship to whatever LLM provider is still offering a subsidised service. And then that LLM provider will have to raise their prices...
And then the industry will go around this loop a few times, until there's no more subsidised LLM services left for people to take advantage of. At which point, we'll finally see how big the commercial customer base actually is for LLM models.
I suspect the results will be far too small to justify the current valuations of companies such as OpenAI!
What's in it for GitHub? At some point, the middleman will start asking for rent/'commission'For the tool in question: you can select models from several providers without friction and GitHub is passing through API usage at retail cost for enterprise users. As APIs change price, copilot users should be able to quickly adapt to model pricing changes.
Starting to wonder if one of the big draws of pushing AI everywhere for the senior execs in tech companies is that it gives them something trivially easy to measure, number of tokens burned by devs, that they can ASS-U-ME is in some way correlated to actual productivity and delivery of fixes and features to customers.I hear many anecdotes about individual employees burning $10k+/month of tokens for marginal gains in productivity. Look up "tokenmaxxing" if you want to melt your brain. GitHub probably made this change because they can't viably sustain a bunch ofwhaleslobsters on a subscription model.
Right now tokenmaxxers are getting kudos, bonuses, and promotions for helping their employers' AI adoption metrics. I can't help but wonder what will happen to them once the model providers start needing to turn a profit.
Why stop at managers? Eagerly awaiting news accounts of at least a few CEOs / CIOs / CTOs getting shit-canned just in time for 4th of July. I've seen enough old-school fireworks in my day; I want to see corporate ones, preferably implosions.What's that I hear - is it the sound of the ice starting to crack under the feet of the managers who insisted that they could get rid of humans and just use LLMs instead?
This mess can't break up and sink careers fast enough.
Absolutely fucking not. They are doing this because so far companies are not finding immense value in this. These things are super fucking subsidized, and no company is making any money with AI, Nvidia being the lone exception.This is insane cope: these price increases are possible because corporations have ventured beyond chatbots and are now pursuing agentic flows at scale. Companies are finding immense value in this and are willing to pay the steep premium for frontier models.
Prove it. Microsoft is a public company. Find the last quarter report where they showed that AI compute was making money.Cloud providers are enjoying continued strong margins for compute, they are not losing money at all.
No, they are nowhere close to breakevenModel providers are in a deep cash burn to acquire users while simultaneously racing towards training the next model, and the API costs seem to be breakeven at least on gross margin, even if the operational cash burn behind it is unsustainable.
Free is always going to be popular but "Do I want to spend $1 to have this thing re-write an email for me?" is a whole 'nother thing.
Yep, this smells a lot like the days when everyone had to get to the cloud at all costs... then they saw that first bill. I still remember the conversationsSo how long before the article about someone who left their agent running for several days looking for the seahorse emoji and now they have a $10k bill they can't pay?
I don't think that the economics of AI usage are going to work out very well. In my previous comment, I mentioned that paying for tokens seems like it would turn into a frustrating, grating experience as you pay varying amounts for wrong answers without knowing how much it's actually going to cost you.I changed my Creative Cloud plan with Adobe to a lower tier to avoid their AI bullshit, so I forget exactly what the new price I'm paying it now. I think they forced me into a monthly instead of annual.
But it's $600ish a year I think. I feel like the AI level I dumped was $800ish.
Similar tools for professionals are on that level. You can pay about that for Fusion 360's full CAD package for instance.
It's a normal and basic cost for doing business. I don't love subscriptions, but I'll pay them to do my work the way I want/need to do it.
I don't use LLMs, but looking at Claude their best plan is $100 a month, so double my Creative Cloud costs. And okay, again if you're a professional there are costs for getting your work done you just pay.
I guess the question is simple: is $100 enough? Is there a future where pros just pay that kind of cost and use the tools and it's just part of doing business?
Or is it not sustainable still at that cost? Or are there not enough people to pay it?
At this point it feels like almost a best case scenario that people who have genuine use cases for these tools just pay to use them, and the slop dries up because the free spigots get turned off and the people who can't justify it move on.
For us not using these tools, what is a million tokens enough for? I understand it being around a million words, which is quite a lot. If you write 4 a4 pages per day that is around 2 years of output. Now, I understand you cannot just say those are equal, just single shot slop is not the same as targeted human output
I think their hope is that most people don’t understand it, so they can rip them off more.For us not using these tools, what is a million tokens enough for? I understand it being around a million words, which is quite a lot. If you write 4 a4 pages per day that is around 2 years of output. Now, I understand you cannot just say those are equal, just single shot slop is not the same as targeted human output
Now, these more useful tools burns a lot more tokens, but how many? Say you needed to write C code to handle the SENT protocol ( wikipedia link ) on a MCU. How many tokens would you burn to write and test that?
The stock market thinks Microsoft is in trouble.
Yeah, I guess it's pointless to put meters on electricity and gas pumps.Ah yes, if there is one thing I expect from my employees it's the financial training and competence to maximize their marginal utility. That's why every one has signing authority.
https://en.wikipedia.org/wiki/Homo_economicus
This is especially true since it's not 1 prompt = 1 token, you have no way to know beforehand or control how many "tokens" are going to be consumed to process your prompt/request.We’ve been warning that the other shoe would drop soon, regarding pricing, but no one listened. And now we’re starting to see their pricing models shift tofunny moneytokens, which have the added “benefit” or obscuring costs and making them incredibly hard to futurecast budgets for. I’m sure that part of this tokenization plan is to do exactly that, abstract the costs in a way that makes it difficult to mentally understand usager rates vs token costs.
I agree, but this is also the experience with humans too, yet with a slower iteration loop.paying for tokens seems like it would turn into a frustrating, grating experience as you pay varying amounts for wrong answers without knowing how much it's actually going to cost you
I'm sure they'll "accidentally" play some token accounting tricks before too long. Telecomm companies would kill to have a metric like that which the customer can't measure themselves.This is especially true since it's not 1 prompt = 1 token, you have no way to know beforehand or control how many "tokens" are going to be consumed to process your prompt/request.
It's a complete black box, and if the token becomes the billable unit then the companies begin to lose the incentive to reduce token consumption and make the models more efficient because that would mean users need fewer tokens and then will spend less,
It was called "message units" back in the day. In large cities local calls were billed message units based on distance and time, and unlike long distance those local calls were not itemized. Not even the phone phreaks could consistently track their message unit usage reliably.I'm sure they'll "accidentally" play some token accounting tricks before too long. Telecomm companies would kill to have a metric like that which the customer can't measure themselves.