Seems like folks would be better off with OpenRouter instead.
If anything, these new multipliers are more transparent than anything OpenAI or Anthropic have communicated regarding actual costs and give us a more realistic understanding of what it's costing these providers.
The fact that we were able to get such a substantial amount of usage for $20/$100/$200 a month was never meant to last and to think otherwise was perhaps a bit naive.
This feels like a strategy from the ZIRP era of tech growth where companies burned investor capital and gave away their products and services for free (or subsidized them heavily) in order to prioritize user acquisition initially. Then once they'd gained enough traction and stickiness they'd then implement a monetization strategy to capitalize on said user base.
I see statements like this as strong indicators that the sales people are wrapping up their work and the accountants are taking over. The land rush is switching to an operational efficiency play.
I've been wanting to get off MS more generally and this is good motivation. Will be playing round with OR this week.
The only model I even used on Copilot was Sonnet and now its got a ridiculous multiplier.
At this point they might as well just charge per Million tokens like every other provider instead of having a subscription.
Also, the multiplier of 27 for Claude Opus 4.6/4. is way higher than the increase in API price would suggest.
I wonder why that is.
In not-too-distant future we're going to be running better models on our phones than we can buy access to today in the cloud. Skate where the puck is going: soak the customers until that day comes.
Provide cheap and unlimited access to Grok for programmers (hence the Cursor partnership/purchase for distribution).
-> This would drag massive revenue right before the IPO announcement, like if the company is super growing
-> At a loss, but don't worry, we need these funds to build the biggest datacenter of the universe.
This announcement would create enough momentum to increase valuation, and because of the merge of his companies, would save his X/Twitter investors from a tragedy.
-> Would also be a great service to Cursor investors and so, who are stuck with their VSCode fork
But they can't buy curser before their IPO so thats that?
Perhaps they have to much compute because Musk overpromised and Twittergroq doesn't need that much compute after he nerved the porn stuff?
(I know openrouter is not open, but it allows competition and should be easily replaceable if needed)