[HN Gopher] Spending Too Much Money on a Coding Agent
       ___________________________________________________________________
        
       Spending Too Much Money on a Coding Agent
        
       Author : GavinAnderegg
       Score  : 131 points
       Date   : 2025-07-01 12:26 UTC (2 days ago)
        
 (HTM) web link (allenpike.com)
 (TXT) w3m dump (allenpike.com)
        
       | cmrdporcupine wrote:
       | I get a lot of value out of Claude Max at $100 USD/month. I use
       | it almost exclusively for my personal open source projects. For
       | work, I'm more cautious.
       | 
       | I worry, with an article like this floating around, and with this
       | as the competition, and with the economics of all this stuff
       | generally... major price increases are on the horizon.
       | 
       |  _Businesses_ (some) can afford this, after all it 's still just
       | a portion of the costs of a SWE salary (tho $1000/m is getting up
       | there). But open source developers cannot.
       | 
       | I worry about this trend, and when the other shoe will drop on
       | Anthropic's products, at least.
        
         | mring33621 wrote:
         | Those market forces will push the thriftier devs to find better
         | ways to use the lesser models. And they will probably share
         | their improvements!
         | 
         | I'm very bullish on the future of smaller, locally-run models,
         | myself.
        
           | cmrdporcupine wrote:
           | I have not invested time on locally-run, I'm curious if they
           | could even get close to approaching the value of Sonnet4 or
           | Opus.
           | 
           | That said, I _suspect_ a lot of the value in Claude Code is
           | hand-rolled fined-tuned heuristics built into the tool
           | itself, not coming from the LLM. It does a lot of management
           | of TODO lists, backtracking through failed paths, etc which
           | look more like old-school symbolic AI than something the LLM
           | is doing on its own.
           | 
           | Replicating that will also be required.
        
         | csomar wrote:
         | If it weren't for the Chinese, the prices would have been x10.
        
         | barrkel wrote:
         | Where do you see the major price increases coming from?
         | 
         | The underlying inference is not super expensive. All the tricks
         | they're pulling to make it smarter certainly multiply the
         | price, but the price being charged almost certainly covers the
         | cost. Basic inference on tuned base models is extremely cheap.
         | But certainly it looks like Anthropic > OpenAI > Google in
         | terms of inference cost structure.
         | 
         | Prices will only come up if there's a profit opportunity; if
         | one of the vendors has a clear edge and gains substantial
         | pricing power. I don't think that's clear at this point. This
         | article is already equivocating between o3 and Opus.
        
         | stpedgwdgfhgdd wrote:
         | Just a matter of time before AI coding becomes commodity and
         | prices drop. 2027
        
       | lvl155 wrote:
       | Is $200/month a lot of money when you can multiply your
       | productivity? It depends but the most valuable currency in life
       | is time. For some, spending thousands a month would be worth it.
        
         | cmrdporcupine wrote:
         | As I said elsewhere... $200/month etc is potentially not a lot
         | for an employer to pay (though I've worked for some recently
         | who balk at just stocking a snacks tray or drink fridge...).
         | 
         | But $200/month is unbearable for open source / free software
         | developers.
        
           | morkalork wrote:
           | It's wild when a company has another department and will
           | shell out $200/month per-head for some amalgamation of
           | Salesforce and other SaaS tools for customer service agents.
        
             | cmrdporcupine wrote:
             | I suspect there's some accounting magic where salaries and
             | software licenses are in one box and "Diet Coke in the
             | fridge" is in another, and the latter is an unbearable cost
             | but the former "OK"
             | 
             | But yeah, doesn't explain non-payment for AI tools.
             | 
             | Current job "permits" Claude usage, but does not pay for
             | it.
        
               | dontlikeyoueith wrote:
               | > Current job "permits" Claude usage, but does not pay
               | for it.
               | 
               | That seems like the worst of all worlds from their
               | perspective.
               | 
               | By not paying for it they introduce a massive security
               | concern.
        
             | jermaustin1 wrote:
             | At a previous job, my department was getting slashed
             | because marketing was moving over to using Salesforce
             | instead of custom software written in-house. Everything was
             | going swimmingly, until the integration vendor for
             | Salesforce just kept billing, and billing and billing.
             | 
             | Last I checked no one is still there who was there
             | originally, except the vendor. And the vendor was charging
             | around $90k/mo for integration services and custom
             | development in 2017 when my team was let go. My team was
             | around $10k/mo including rent for our cubicles.
             | 
             | That was another weird practice I've never seen elsewhere,
             | to pay rent, we had to charge the other departments for our
             | services. They turned IT and infrastructure into a
             | business, and expected it to turn a profit, which pissed
             | off all the departments who had to start paying for their
             | projects, so they started outsourcing all development work
             | to vendors, killing our income stream, which required
             | multiple rounds of layoffs until only management was left.
        
               | bongodongobob wrote:
               | IT charging other departments is standard practice at
               | every large company I've been at.
        
               | mgkimsal wrote:
               | I've seen it too - not uncommon. A frustrating angle is
               | vendor lockin. You are required to only use the internal
               | IT team for everything, even if they're far more
               | expensive and less skilled. They can 'charge' whatever
               | they want, and you're stuck with their skills, prices and
               | timeline. Going outside of that requires many levels of
               | signoffs/approvals, and untold amounts of time making
               | your case. There's value in having some central
               | purchasing process, but when you limit your vendors to
               | one (internal or external) you'll creating a lot more
               | problems that you don't need to have.
        
               | bongodongobob wrote:
               | Well that leads to shadow IT and upper management
               | throwing a shit fit when we can't fix their system we
               | don't know anything about.
        
               | hluska wrote:
               | This is really interesting because I was in business
               | school almost thirty years and a cost accounting
               | professor used almost this exact example, only with
               | photocopiers and fax machines to illustrate how you can
               | cost a company to death.
               | 
               | He would have considered that company to be running a
               | perfectly controlled cost experiment. Though it was so
               | perfectly controlled they forgot that humans actually did
               | the work. With cost accounting projects, you pay morale
               | and staffing charges well after the project itself was
               | costed.
               | 
               | I hadn't thought of that since the late 90s. Good comment
               | but how the heck did I get that old??? :)
        
         | nisegami wrote:
         | My butt needs to be in this chair 8 hours a day. Whether it
         | takes me 20 hours to do a task or 2 doesn't really matter.
        
           | bad_haircut72 wrote:
           | This is why communism doesnt work lmao
        
             | tough wrote:
             | maybe the issue is capitalism where even if your
             | productivity multiplies x100
             | 
             | your salary stays x1
             | 
             | and your work hours stay x1
        
               | koakuma-chan wrote:
               | But aren't you supposed to be incentivized to work harder
               | by having equity?
        
               | rimunroe wrote:
               | Equity is a lottery ticket. Is sacrificing my happiness
               | or life balance in the near term worth the gamble that A)
               | my company will be successful, and B) that my equity
               | won't have been diluted to worthlessness by the time that
               | happens? At higher levels of
               | seniority/importamce/influence this might make sense, but
               | for most people I seriously doubt it does, especially
               | early in their careers.
        
               | adastra22 wrote:
               | That doesn't happen anywhere outside of Silicon Valley.
        
               | tough wrote:
               | And even in Silicon Valley you get the survivor ship bias
               | of the 1% of companies getting to IPO and making their
               | employees decent exit stories...
               | 
               | 99% of startups die off worthless and your equity never
               | realises.
        
               | tough wrote:
               | As a non-founder / not a VC you max get a few percentage
               | points, and its mostly paper toilet money until there's
               | an exit or IPO, and the founders will always try to
               | squeeze you if they can, not because they're bad people,
               | but because the system incentivises it. (you'll keep
               | getting diluted in future rounds)
               | 
               | tbh, if im gonna bust my ass I'd rather own the thing.
        
               | chillingeffect wrote:
               | A recent job offer for a startup was a 5 year vest with a
               | 2 year cliff. Seriously?
        
               | dfee wrote:
               | Quite literally not.
               | 
               | Capitalism encourages you to put your butt in your own
               | seat and reap the rewards of your efforts.
               | 
               | Of course it also provides you the decision making to
               | keep your butt in someone else's seat if the risk vs.
               | reward of going your own isn't worth it.
               | 
               | And then it allows your employer to put another butt in
               | your seat if you don't adopt efficiency patterns.
               | 
               | So: capitalism is compatible with communism as an option,
               | but it's generally a suboptimal option for one or both
               | parties.
        
               | hiddencost wrote:
               | No it doesn't. People tell that story but the system is
               | incredibly heavily leveraged to prevent that.
        
               | tough wrote:
               | Maybe in a true -capitalistic- market that'd happen.
               | 
               | but the state keeps meddling and making oligarchs and
               | friends have unfair advantages.
               | 
               | It's hard to compete when the system is rigged from the
               | start.
        
               | p_l wrote:
               | Capitalism is exactly about amassing capital to make
               | others reliant on capitalist providing capital for the
               | tools necessary to do the work, then extracting rent from
               | the value produced.
               | 
               | In true capitalist market you end up with oligarchy.
        
               | dfee wrote:
               | also a fair point :)
        
               | darth_avocado wrote:
               | More accurate representation is this:
               | 
               | Productivity multiplies x2 You keep your job x0.5 Your
               | salary x0.8 (because the guy we just fired will gladly do
               | your job for less) Your work hours x1.4 (because now we
               | expect you to do the work of 2 people, but didn't account
               | for all the overhead that comes with it)
        
             | nisegami wrote:
             | I am literally describing my life in a capitalist
             | society....
        
               | bee_rider wrote:
               | I think that was the joke
        
             | rapind wrote:
             | Communism is an ideal but never a reality. What you see in
             | reality is at best an attempt at communism which is quickly
             | derailed by corruption and greed. I mean, it's great to
             | have ideals, but you should also recognize when those
             | ideals are completely impractical given the human
             | condition.
             | 
             | By the way, this also applies to the "Free market" ideal...
        
               | delusional wrote:
               | Importantly, problems with the ideal shouldn't preclude
               | good actions that take us in a direction.
               | 
               | There being problems with absolute libertarian free
               | markets doesn't mean all policies that evoke the free
               | market ideal must be disregarded, nor does the problems
               | with communism mean that all communist actions must be
               | ignored.
               | 
               | We can see a problem with an ideal, but still wish to
               | replicate the good parts.
        
               | rapind wrote:
               | Sure. The issue for me is when people intentionally
               | mislabel something to make it look worse.
               | 
               | For example, mislabelling socialism as communism. The
               | police department, fire department, and roads are all
               | socialist programs. Only a moron would call this
               | communism and yet for some reason universal healthcare...
               | 
               | There's also this nonsense when someone says "That's the
               | free market at work", and I'm like, if we really lived in
               | a free market then you'd be drinking DuPont's poison
               | right now.
               | 
               | Using the words "Communism" and "Free market" just show a
               | (often intentional) misunderstanding of the nuance of how
               | things actually work in our society.
               | 
               | The communism label must be the most cited straw man in
               | all of history at this point.
        
               | hooverd wrote:
               | for all the lip service capitalists give to the free
               | market, they hate it. their revealed preference is for a
               | monopoly.
        
               | nurettin wrote:
               | > Communism is an ideal but never a reality
               | 
               | There is nothing ideal about communism. I'd rather own my
               | production tools and be as productive as I want to be.
               | I'd rather build wealth over trading opportunities, I'd
               | rather hire people and reinvest earnings. That is ideal.
        
           | Fokamul wrote:
           | That's your problem, or your company or your country.
           | 
           | Here in EU, if not stated in your work agreement, it's pretty
           | common people work full time job and also as a self-employed
           | contractor for other companies.
           | 
           | So when I'm finished with my work, HO of course, I just work
           | on my "contractor" projects.
           | 
           | Honestly, I wouldn't sign a full time contract banning me
           | from other work.
           | 
           | And if you have enough customers, you just drop full time
           | job. And just pay social security and health insurance, which
           | you must pay by law anyway.
           | 
           | And specially in my country, it's even more ridiculous that
           | as self-employed you pay lower taxes than full time
           | employees, which truth to be told are ridiculously high.
           | Nearly 40% of your salary.
        
             | teiferer wrote:
             | > Here in EU, if not stated in your work agreement, it's
             | pretty common people work full time job and also as a self-
             | employed contractor for other companies.
             | 
             | First time I'm hearing this. Where in the EU are you? I
             | don't know anybody doing this, but it could depend on the
             | country (I'm in the nordics).
        
             | TheRoque wrote:
             | In my country France, your contact May state hours, so
             | you're paid to sit in the chair
             | 
             | Freelancing as a side hustle may be forbidden if your
             | employer refuses
             | 
             | And it makes sense to pay more taxes since you also have
             | more social benefits (paid leaves, retirement money and
             | unemployment money), nothing is free
        
             | lazyasciiart wrote:
             | Hmm, not a practice I've come across in the EU. What
             | countries specifically are you talking about?
        
             | Tainnor wrote:
             | > Here in EU, if not stated in your work agreement, it's
             | pretty common people work full time job and also as a self-
             | employed contractor for other companies.
             | 
             | Absolutely not a common thing in my corner of the EU.
        
           | artursapek wrote:
           | If you're salaried, you are not a task-based worker. The
           | company pays you a salary for your full day's worth of
           | productive time. If you can suddenly get 5x more done in that
           | time, negotiate a higher salary or leave. If you're actually
           | more productive, they will fight to keep you.
        
             | henryfjordan wrote:
             | Your salary is not determined by your productivity, it's
             | determined by market rates. 5X productivity does not mean
             | 5X salary. Employers prey on labor market inefficiencies to
             | keep the market rates low.
             | 
             | Any employer with 2 brain cells will figure out that you
             | are more productive as a developer by using AI tools, they
             | will mandate all developers use it. Then that's the new bar
             | and everyone's salary stays the same.
        
             | freehorse wrote:
             | Yeah a 20$ plan is prob enough for the AI slop you need to
             | fill in your 8h working time. Unless you have many projects
             | that require more AI slop that is.
        
         | petesergeant wrote:
         | > Is $200/month a lot of money when you can multiply your
         | productivity?
         | 
         | My read was the article takes it as a given that $200/m is
         | worth it.
         | 
         | The question in the article seems more: is an extra $800/m to
         | move from Claude Code to an agent using o3 worth it?
        
       | rogerkirkness wrote:
       | Early stage founder here. You have no idea how worth it
       | $200/month is as a multiple on what compensation is required to
       | fund good engineers. Absolutely the highest ROI thing I have done
       | in the life of the company so far.
        
         | lvl155 wrote:
         | At this point, question is when does Amazon tell Anthropic to
         | stop because it's gotta be running up a huge bill. I don't
         | think they can continue offering the $200 plan for too long
         | even with Amazon's deep pocket.
        
           | fragmede wrote:
           | Inference is cheap to run though, and how many people do you
           | think are getting their $200 worth of it?
        
             | anonzzzies wrote:
             | I don't know, I have to figure out another way to count
             | money I guess, but that $200 gives me a lot of worth, far
             | more than 200. I guess if you like sleeping and do other
             | stuff than drive Claude Code all the time, you might have a
             | different feeling. For us it works well.
        
               | fragmede wrote:
               | My question wasn't if the $200 was worth it to the buyer.
               | Renting an H100 for a month is gonna cost around $1000
               | ($1.33+/hr). Pretend the use isn't bursty (but really it
               | is). If you could get 6 people on one, the company is
               | making money selling inference.
        
               | lvl155 wrote:
               | Let me know when you can run Opus on H100.
        
               | fragmede wrote:
               | I don't understand. Obviously I can't run Opus on an
               | H100, only Anthropic can do that since they are the only
               | ones with the model. I am assuming they are using H100s,
               | and that an all-in cost for an H100 comes to less then
               | $1000/month, and doing some back of the envelope math to
               | say if they had a fleet of H100s at their disposal, that
               | it would take six people running it flat out, for the
               | $200/month plan to be profitable.
        
               | WXLCKNO wrote:
               | Right but it probably takes like 8-10 H100s to run Claude
               | Opus for inference just memory wise? I'm far from an
               | expert just asking.
               | 
               | Does "one" Claude Opus instance count as the full model
               | being loaded onto however many GPUs it takes ?
        
             | lvl155 wrote:
             | Based on people around me and anecdotal evidence of when
             | Claude struggles, a lot more than you think. I've done some
             | analysis on personal use between Openrouter, Amp, Claude
             | API and $200 subscription, I probably save around
             | $40-50/day. And I am a "light" user. I don't run things in
             | parallel too much.
        
       | bicepjai wrote:
       | I can see how pricing at 100 to 200$ per month per employee could
       | make sense for companies, it's a clear value proposition at that
       | scale. But for personal projects and open source work, it feels
       | out of reach. I'd really like to see more accessible pricing
       | tiers for individuals and hobbyists. Pay per token models don't
       | work for me either; earlier this year, I racked up almost $1,000
       | in a month just experimenting with personal projects, and that
       | experience has made me wary of using these tools since.
       | 
       | Sources
        
         | indigodaddy wrote:
         | I've seen some people describe getting pretty good value out of
         | the Claude $20 plan with Claude Code?
        
           | stpedgwdgfhgdd wrote:
           | Pro is fine for medium sized projects, stick to 1 terminal.
        
         | fakedang wrote:
         | > Pay per token models don't work for me either; earlier this
         | year, I racked up almost $1,000 in a month just experimenting
         | with personal projects, and that experience has made me wary of
         | using these tools since.
         | 
         | Can't have your cake and eat it too.
         | 
         | Behold the holy trifecta of: Number of Projects - Code Quality
         | - Coding Agent Cost
        
         | teiferer wrote:
         | > But for personal projects and open source work, it feels out
         | of reach
         | 
         | Is it? Many hobbies cost much more money. A nice bike
         | (motorbike or road bike, doesn't matter), a sailing boat, golf
         | club/trips, a skiing season pass ... $100/month is
         | significantly less than what you'd burn with those other
         | things. Sure you can program in your free time without such a
         | subscription, and if you enjoy that then by all means, but if
         | it takes away the grunt work and you are having more fun, I
         | don't see the issue.
         | 
         | Gym memberships are in that order of magnitude too, even though
         | you could use some outdoor gym in a city park for free. Maybe
         | those indoor perks of heating, lights, roof and maintained
         | equipment are worth sth? Similar with coding agents for
         | personal projects...
        
         | dist-epoch wrote:
         | Github Copilot has unlimited GPT-4.1 for $10/month.
        
           | indigodaddy wrote:
           | is GPT-4.1 decent for coding?
        
           | adhamsalama wrote:
           | And you can use it as an API, so you can plug it as an OpenAI
           | compatible LLM provider into any 3rd party tool that uses AI,
           | for free.
           | 
           | That's the only reason I subscribed to GitHub Copilot.
           | Currently using it for Aider.
        
       | feintruled wrote:
       | Interesting. Though it seems they are themselves building Agentic
       | AI tooling. It's vibe coding all the way down - when's something
       | real going to pop out the bottom?
        
         | z3c0 wrote:
         | An LLM salesman assuring us that $1000/mo is a reasonable cost
         | for LLMs feels a bit like a conflict of interests, especially
         | when the article doesn't go into much detail about the code
         | quality. If anything, their assertion that one should stick to
         | boring tech and "have empathy for the model" just reaffirms
         | that anybody doing anything remotely innovative or cutting-edge
         | shouldn't bother too much with coding agents.
        
       | butlike wrote:
       | I love how paying for prompts stuck. Like, if someone's going to
       | do your homework for you, they should get compensated.
        
       | deadbabe wrote:
       | I find it kind of boggling that employers spend $200/month to
       | make employees lives easier, for no real gain.
       | 
       | That's right. Productivity does go up, but most of these
       | employees aren't really contributing directly to revenue. There
       | is no code to dollar pipeline. Finishing work faster means some
       | roadmap items move quicker, but they just move quicker toward
       | true bottlenecks that can't really be resolved quickly with AI.
       | So the engineers sit around doing nothing for longer periods of
       | time waiting to be unblocked. Deadlines aren't being estimated
       | tighter, they are still as long as ever.
       | 
       | Enjoy this time while it lasts. Someday employers might realize
       | they need to hire less and just cram more work into individual
       | engineers schedules, because AI should supposedly make work much
       | easier.
        
         | jajko wrote:
         | Coding an actual solution is what, 5-10% of the overall project
         | time?
         | 
         | I dont talk about some SV megacorps where better code can
         | directly affect slightly revenue or valuation and thus more
         | time is spend coding and debugging, I talk about basically all
         | other businesses that somehow need developers.
         | 
         | Even if I would be 10x faster project managers would barely
         | notice that. And I would lose a lot of creative fun that good
         | coding tends to bring. Also debugging, 0 help there its all on
         | you and your mind and experience.
         | 
         | Llms are so far banned in my banking megacorp and I aint
         | complaining.
        
         | jayd16 wrote:
         | There's been pretty widespread layoffs in tech for a few years
         | now.
        
         | francisofascii wrote:
         | > Someday employers might realize they need to hire less and
         | just cram more work into individual engineers schedules
         | 
         | We are already past that point. The high water mark for Devs
         | was ironically in late 2020 during Covid, before RTO when we
         | were in high demand.
        
       | tabs_or_spaces wrote:
       | Since this is a business problem.
       | 
       | * It's not clear on how much revenue or new customers is
       | generated by using a coding agent
       | 
       | * It's not clear on how things are going on production. There's
       | only talks about development in the article
       | 
       | I feel ai coding agents will give you the edge. Just this article
       | doesn't talk about revenue or PnL side of things, just perceived
       | costs saved from not employing an engineer.
        
         | v5v3 wrote:
         | Yes. A company needs measurable ROI and isn't going to spend
         | $200 a month per seat on Claude.
         | 
         | It will instead sign a deal with Microsoft for ai that is 'good
         | enough' and limit expensive ai to some. Or being in the big
         | consultancys as usual to do the projects.
        
       | suninsight wrote:
       | So what we do at NonBioS.ai is to use a cheaper model to do
       | routine tasks, but switch to a higher thinking model seamlessly
       | if the agent get stuck. Its most cost efficient, and we take that
       | switching cost away from the engineer.
       | 
       | But broadly agree to the argument of the post - just spending
       | more might still be worth it.
        
       | hoistbypetard wrote:
       | > literally changing failing tests into skipped tests to resolve
       | "the tests are failing."
       | 
       | Wow. It really is like a ridiculous, over-confident, *very*
       | junior developer.
        
       | jasonthorsness wrote:
       | I really hope we can avoid metered stuff for the long-term. One
       | of the best aspects of software development is the low capital
       | barrier to entry, and the cost of the AI tools right now is
       | threatening that.
       | 
       | I'm fortunate in that my own use of the AI tools I'm personally
       | paying for is squished into my off-time on nights and weekends,
       | so I get buy with a $20/month Claude subscription :).
        
       | quonn wrote:
       | Charging $200/month is economically only possible if there is not
       | a true market for LLMs or some sort of monopoly power. Currently
       | there is no evidence that this will be the case. There are
       | already multiple competitors and the barrier to entry is
       | relatively low (compared to e.g. the car industry or other
       | manufacturing industries), there are no network effects (like for
       | social networks) and no need to get the product 100% right (like
       | compatibility to Photoshop or Office) and the prices for training
       | will drop further. Furthermore $200 is not free (like Google).
       | 
       | Can anyone name one single widely-used digital product that does
       | _not_ have to be precisely correct/compatible/identical to The
       | Original and that everyone _does_ pay $200/month for?
       | 
       | Therefore, should prices that users pay get anywhere even close
       | to that number, there will naturally be opportunities for
       | competitors to bring prices down to a reasonable level.
        
         | chis wrote:
         | I think you forgot to consider the cost of providing the
         | inference.
        
           | quonn wrote:
           | Well, that could be an additional problem.
           | 
           | My point was not that AI will necessarily be cheaper to run
           | than $200, but that there is not much profit to be made. Of
           | course the cost of inference will form a lower bound on the
           | price as well.
        
         | lvl155 wrote:
         | Barrier to entry is actually very very high. Just because we
         | have "open source" models doesn't mean anyone can enter. And
         | the gap is widening now. I see Anthropic/OpenAI as clear
         | leaders. Opus 4 and its derivative products are irreplaceable
         | for coders since Spring 2025. Once you figure it out and have
         | your revelation, it will be impossible to go back. This is an
         | iPhone moment right now and the network effect will be
         | incredible.
        
           | mathiaspoint wrote:
           | It's all text and it's all your text. There's zero network
           | effect.
        
             | lvl155 wrote:
             | And that's how it's been forever. If your competitor is
             | doing 10x your work, you will be compelled to learn. If
             | someone has a nail gun and you're using a hammer, no one's
             | saying "it's all nails." You will go buy a nail gun.
        
               | mathiaspoint wrote:
               | Network affects come from people building on extra stuff.
               | There's no special sauce with these models, as long as
               | you have an inference endpoint you can recreate anything
               | yourself with any of the models.
               | 
               | As to the nailgun thing, that's an interesting analogy,
               | I'm actually building my own house right now entirely
               | with hand tools, it's on track to finish in 1/5 the time
               | some of this mcmansions do with 1/100th of the cost
               | because I'm building what I actually need and not
               | screwing around with stuff for business reasons. I think
               | you'll find software projects are more similar to that
               | than you'd expect.
        
       | jbentley1 wrote:
       | My Claude Code usage would have been $24k last month if I didn't
       | have a max plan, at least according to Claude-Monitor.
       | 
       | I've been using a tool I developed
       | (https://github.com/stravu/crystal) to run several sessions in
       | parallel. Sometimes I will run the same prompt multiple times and
       | pick the winner, or sometimes I'll be working on multiple
       | features at once, reviewing and testing one while waiting on the
       | others.
       | 
       | Basically, with the right tooling you can burn tokens incredibly
       | fast while still receiving a ton of value from them.
        
         | unshavedyak wrote:
         | Max $100 or $200?
         | 
         | I'm on $100 and i'm shocked how much usage i get out of Sonnet,
         | while Opus feels like no usage at all. I barely even bother
         | with Opus since most things i want to do just runout super
         | quick.
        
           | borgel wrote:
           | Interesting, I'm fairly new to using these tools and am
           | starting with Claude Code but at the $20 level. Do you have
           | any advice for when I would benefit from stepping up to $100?
           | I'm not sure what gets better (besides higher usage limits).
        
             | vlade11115 wrote:
             | I recently switched from Pro to $100 Max, and the only
             | difference I've found so far is higher usage limits.
             | Antropic tends to give shiny new features to Max users
             | first, but as of now, there is nothing Max-only. For me,
             | it's a good deal nonetheless, as even $100 Max limits are
             | huge. While on Pro, I hit the limits each day that I used
             | Claude Code. Now I rarely see the warning, but I never
             | actually hit the limit.
        
             | unshavedyak wrote:
             | No clue as i've not used Claude Code on Pro to get an idea
             | of usage limits. But, if you get value out of Claude Code
             | and ever run into limits, Max is quite generous for Sonnet
             | imo. I have zero concern about Sonnet usage atm, so it's
             | definitely valuable there.
             | 
             | Usage for Opus is my only "complaint", but i've used it so
             | little i don't even know if it's that much better than
             | Sonnet. As it is, even with more generous Opus limits i'd
             | probably want a more advanced Claude Code behavior - where
             | it uses Opus to plan and orchestrate, and Sonnet would do
             | the grunt work for cheaper tokens. But i'm not aware of
             | that as a feature atm.
             | 
             | Regardless, i'm quite pleased with Claude Code on $100 Max.
             | If it was a bit smarter i might even upgrade to $200, but
             | atm it's too dumb to give it more autonomy and that's what
             | i'd need for $200. Opus might be good enough there, but
             | $100 Opus limits are so low i've not even gotten enough
             | experience with it to know if it's good enough for $200
        
         | mccoyb wrote:
         | Looked at your tool several times, but haven't answered this
         | question for myself: does this tool fundamentally use the
         | Anthropic API (not the normal MAX billing)? Presuming you built
         | around the SDK -- haven't figured out if it is possible to use
         | the SDK, but use the normal account billing (instead of hitting
         | the API).
         | 
         | Love the idea by the way! We do need new IDE features which are
         | centered around switching between Git worktrees and managing
         | multiple active agents per worktree.
         | 
         | Edit: oh, do you invoke normal CC within your tool to avoid
         | this issue and then post-process?
        
           | Jonovono wrote:
           | Claude code has an SDK, where you specify the path to the CC
           | executable. So I believe thats how this works. Once you have
           | set up claude code in your environment and authed with
           | however you like, this will just use that executable in a new
           | UI
        
             | mccoyb wrote:
             | Interesting, the docs for auth don't mention it:
             | https://docs.anthropic.com/en/docs/claude-
             | code/sdk#authentic...
             | 
             | Surprised that this works, but useful if true.
        
               | Jonovono wrote:
               | https://docs.anthropic.com/en/docs/claude-
               | code/sdk#typescrip...
               | 
               | `pathToClaudeCodeExecutable`!
        
               | mccoyb wrote:
               | Thanks for showing!
        
         | qwertox wrote:
         | Does Claude Max allow you to use 3rd-party tools with an API
         | key?
        
         | BiteCode_dev wrote:
         | There is no way those companies don't loose ton of money on max
         | plans.
         | 
         | I use and abuse mine, running multiple agents, and I know that
         | I'd spend the entire month of fees in a few days otherwise.
         | 
         | So it seems like a ploy to improve their product and capture
         | the market, like usual with startups that hope for a winner-
         | takes-all.
         | 
         | And then, like uber or airbnb, the bait and switch will raise
         | the prices eventually.
         | 
         | I'm wondering when the hammer will fall.
         | 
         | But meanwhile, let's enjoy the free buffet.
        
         | RobinL wrote:
         | This is why unlimited plans are always revoked eventually - a
         | small fraction of users can be responsible for huge costs
         | (Amazon's unlimited file backup service is another good
         | example). Also whilst in general I don't think there's much to
         | worry about with AI energy use, burning $24k of tokens must
         | surely be responsible for a pretty large amount of energy
        
           | spacecadet wrote:
           | 70,000,000 just last week ;P
           | 
           | But based on my costs, yours sounds much much higher :)
        
         | v5v3 wrote:
         | >My Claude Code usage would have been $24k last month if I
         | didn't have a max plan, at least according to Claude-Monitor.
         | 
         | In their dreams.
        
       | nickjj wrote:
       | Serious question, how do you justify paying for any of this
       | without feeling like it's a waste?
       | 
       | I occasionally use ChatGPT (free version without logging in) and
       | the amount of times it's really wrong is very high. Often times
       | it takes a lot of prompting and feeding it information from third
       | party sources for it to realize it has incorrect information and
       | then it corrects itself.
       | 
       | All of these prompts would be using money on a paid plan right?
       | 
       | I also used Cursor (free trial on their paid plan) for a bit and
       | I didn't find much of a difference. I would say whatever back-end
       | it was using was possibly worse. The code it wrote was busted and
       | over engineered.
       | 
       | I want to like AI and in some cases it helps gain insight on
       | something but I feel like literally 90% of my time is it
       | prodiving me information that straight up doesn't work and
       | eventually it might work but to get there is a lot of time and
       | effort.
        
         | benbayard wrote:
         | I'd try out cursor with either o3 or Claude 4 Opus. The free
         | version of ChatGPT and Claude in Cursor are much better. That's
         | also what this article claims and is true in my experience.
        
         | chis wrote:
         | I can't believe people are still writing comments like this lol
         | how can it be
        
           | zzzeek wrote:
           | I think it's a serious question because something really big
           | is being missed here. There seem to be very different types
           | of developers out there and/or working on very different
           | kinds of codebases. Hypothetically, maybe you have devs or
           | specific contexts where the dev can just write the code
           | really fast where having to explain it to a bot is more time
           | consuming, vs. devs /contexts where lots of googling and
           | guessing goes on and it's easier to get the AI to just show
           | you how to do it.
           | 
           | I'm actually employer mandated to continue to try/use AI bots
           | / agents to help with coding tasks. I'm sort of getting them
           | to help me but I'm still really not being blown away and
           | still tending to prefer not to bother with them with things
           | I'm frequently iterating on, they are more useful when I have
           | to learn some totally new platform/API. Why is that? do we
           | think there's something wrong with me?
        
             | vineyardmike wrote:
             | > I'm actually employer mandated to continue to try/use AI
             | bots / agents to help with coding tasks
             | 
             | I think a lot of this comes down to the context management.
             | I've found that these tools work worse at my current
             | employer than my prior one. And I think the reason is
             | context - my prior employer was a startup, where we relied
             | on open source libraries and the code was smaller,
             | following public best practices regarding code structure in
             | Golang and python. My current employer is much bigger, with
             | a massive monorepo of custom written/forked libraries.
             | 
             | The agents are trained on lots of open source code, so
             | popular programming languages/libraries tend to be really
             | well represented, while big internal libraries are a
             | struggle. Similarly smaller repositories tend to work
             | better than bigger ones, because there is less searching to
             | figure out where something is implemented. I've been trying
             | some coding agents with my current job, and they spend a
             | lot more time searching through libraries looking to
             | understand how to implement or use something if it relies
             | on an internal library.
             | 
             | I think a lot of these struggles and differences are also
             | present with people, but we tend to discount this struggle
             | because people are generally good at reasoning. Of course,
             | we also learn from each task, so we improve over time,
             | unlike a static model.
        
         | abdullahkhalids wrote:
         | Depends on how much you use. I use AI to think through code and
         | other problems, and write the dumb parts of code. Claude
         | definitely works much better than the free offerings. I use
         | OpenRouter [1] and spend only a couple of dollar per month on
         | AI usage. It's definitely worth it.
         | 
         | [1] https://openrouter.ai No affiliation
        
         | vineyardmike wrote:
         | > Serious question, how do you justify paying for any of this
         | without feeling like it's a waste?
         | 
         | I would invert the question, how can you think it's a waste
         | (for OP) if they're willing to spend $1000/mo on it? This isn't
         | some emotional or fashionable thing, they're tools, so you'd
         | have to assume they derive $1000 of value.
         | 
         | > free version... the amount of times it's really wrong is very
         | high... it takes a lot of prompting and feeding it information
         | from third party
         | 
         | Respectfully, you're using it wrong, and you get what you paid
         | for. The free versions are obviously inferior, because
         | obviously they paywall the better stuff. If OP is spending
         | $50/day, why would the company give you the same version for
         | free?
         | 
         | The original article mentions Cursor. With (paid) cursor, the
         | tool automatically grabs all the information on behalf of the
         | user. It will grab your code, including grepping to find the
         | right files, and it will grab info from the internet (eg up to
         | date libraries, etc), and feed that into the model which can
         | provide targeted diffs to update just select parts of a file.
         | 
         | Additionally, the tools will automatically run
         | compiler/linter/unit tests to validate their work, and iterate
         | and fix their mistakes until everything works. This write ->
         | compile -> unit test -> lint loop is exactly what a human will
         | do.
        
           | klank wrote:
           | > This isn't some emotional or fashionable thing, they're
           | tools, so you'd have to assume they derive $1000 of value.
           | 
           | This is not born out in my personal experience at all. In my
           | experience, both in the physical and software tool worlds,
           | people are incredibly emotional about their tools. There are
           | _deep_ fashion dynamics within tool culture as well. I mean,
           | my god, editors are the prima donna of emotional fashion
           | running roughshod over the developer community for decades.
           | 
           | There was a reason it was called "Tool Time" on Home
           | Improvement.
        
           | pxc wrote:
           | > This isn't some emotional or fashionable thing, they're
           | tools, so you'd have to assume they derive $1000 of value.
           | 
           | If someone spends a lot of money on something but they don't
           | derive commensurate value from that purchase, they will
           | experience cognitive dissonance proportional to that
           | mismatch. But ceasing or reversing such purchases are only
           | _some_ of the possibilities for resolving that dissonance.
           | Another possibility is adjusting one 's assessment of the
           | value of that purchase. This can be subconscious and
           | automatic, but it an also involve validation-seeking
           | behaviors like reading positive/affirming product reviews.
           | 
           | In this present era of AI hype, purchase-affirming material
           | is very abundant! Articles, blog posts, interviews podcasts,
           | HN posts.. there's lots to tell people that it's time to "get
           | on board", to "invest in AI" both financially and
           | professionally, etc.
           | 
           | How much money people have to blow on experiments and toys
           | probably makes a big difference, too.
           | 
           | Obviously there are limits and caveats to this kind of
           | distortion. But I think the reality here is a bit more
           | complicated than one in which we can directly read the
           | derived value from people's purchasing decisions.
        
           | nickjj wrote:
           | > Respectfully, you're using it wrong, and you get what you
           | paid for.
           | 
           | I used the paid (free trial) version of Cursor to look at Go
           | code. I used the free version of ChatGPT for topics like
           | Rails, Flask, Python, Ansible and various networking things.
           | These are all popular techs. I wouldn't describe either
           | platform as "good" if we're measuring good by going from an
           | idea to a fully working solution with reasonable code.
           | 
           | Cursor did a poor job. The code it provided was mega over
           | engineered to the point where most of the code had to be
           | thrown away because it missed the big picture. This was after
           | a lot of very specific prompting and iterations. The code it
           | provided also straight up didn't work without a lot of manual
           | intervention.
           | 
           | It also started to modify app code to get tests to pass when
           | in reality the test code was the thing that was broken.
           | 
           | Also it kept forgetting things from 10 minutes ago and
           | repeating the same mistakes. For example when 3 of its
           | solutions didn't work, it started to go back and suggest
           | using the first solution that was confirmed to not work (and
           | it even output text explaining why it didn't work just
           | before).
           | 
           | I feel really bad for anyone trusting AI to write code when
           | you don't already have a lot of experience so you can keep it
           | in check.
           | 
           | So far at best I barely find it helpful for learning the
           | basics of something new or picking out some obscure syntax of
           | a tool you don't well after giving it a link to the tool's
           | docs and source code.
        
             | BeetleB wrote:
             | > I feel really bad for anyone trusting AI to write code
             | when you don't already have a lot of experience so you can
             | keep it in check.
             | 
             | You _definitely_ should be skilled in your domain to use it
             | effectively.
        
         | jonfw wrote:
         | The AI agents that run on your machine where they have access
         | to the code, and tools to browse/edit the code, or even run
         | terminal commands are much more powerful than a simple chatbot.
         | 
         | It took some time for me to learn how to use agents, but they
         | are very powerful once you get the hang of it.
        
           | josefresco wrote:
           | > much more powerful than a simple chatbot
           | 
           | Claude Pro + Projects is a good middle ground between the
           | two. Things didn't really "click" for me as a _non-developer_
           | until I got access to both.
        
         | BeetleB wrote:
         | Try with serious models. Here's what I would suggest:
         | 
         | 1. Go to https://aider.chat/docs/leaderboards/ and pick one of
         | the top (but not expensive) models. If unsure, just pick Gemini
         | 2.5 Pro ( _not_ Flash).
         | 
         | 2. Get API access.
         | 
         | 3. Find a decent tool (hint: Aider is very good and you can
         | learn the basics in a few minutes).
         | 
         | 4. Try it on a new script/program.
         | 
         | 5. (Only after some experience): Read people's detailed posts
         | describing _how_ they use these tools and steal their ideas.
         | 
         | Then tell us how it went.
        
       | chis wrote:
       | Has anyone else done this and felt the same? Every now and then I
       | try to reevaluate all the models. So far it still feels like
       | Claude is in the lead just because it will predictably do what I
       | want when given a mid-sized problem. Meanwhile o3 will sometimes
       | one-shot a masterpiece, sometimes go down the complete wrong
       | path.
       | 
       | This might also just be a feature of the change in problem size -
       | perhaps the larger problems that necessitate o3 are also too
       | open-ended and would require much more planning up front. But at
       | that point it's actually more natural to just iterate with sonnet
       | and stay in the driver's seat a bit. Plus sonnet runs 5x faster.
        
       | delduca wrote:
       | I just pay $20/month on ChatGPT and spend the entire day coding
       | with its help, no need to pay for tokens, no need to integrate it
       | on your IDE.
        
       | iamleppert wrote:
       | "Now we don't need to hire a founding engineer! Yippee!" I wonder
       | all these people who are building companies that are built on
       | prompts (not even a person) from other companies. The minute
       | there is a rug pull (and there WILL be one), what are you going
       | to do? You'll be in even worse shape because in this case there
       | won't be someone who can help you figure out your next move,
       | there won't be an old team, there will just be NO team. Is this
       | the future?
        
         | hluska wrote:
         | It get even darker - I was around in the 1990s and a lot of
         | people who ran head on into that generation's problems used
         | those lessons to build huge startups in the 2000s. If we have
         | outsourced a lot of learning, what do we do when we fail? Or
         | how we compound on success?
        
         | ARandumGuy wrote:
         | Any cost/benefit analysis of whether to use AI has to factor in
         | the fact that AI companies aren't even close to making a
         | profit, and are primarily funded by investment money. At some
         | point, either the cost to operate these AI models needs to go
         | down, or the prices will go up. And from my perspective, the
         | latter seems a lot more likely.
        
           | v5v3 wrote:
           | They are not making money as they are all competing to push
           | the models further and this R&D spending on salaries and
           | cloud/hardware costs.
           | 
           | Unless models get better people are not going to pay more.
        
         | xianshou wrote:
         | Rug pulls from foundation labs are one thing, and I agree with
         | the dangers of relying on future breakthroughs, but the open-
         | source state of the art is already pretty amazing. Given the
         | broad availability of open-weight models within under 6 months
         | of SotA (DeepSeek, Qwen, previously Llama) and strong open-
         | source tooling such as Roo and Codex, why would you expect AI-
         | driven engineering to regress to a worse state than what we
         | have today? If every AI company vanished tomorrow, we'd still
         | have powerful automation and years of efficiency gains left
         | from consolidation of tools and standards, all runnable on a
         | single MacBook.
        
           | fhd2 wrote:
           | The problem is the knowledge encoded in the models. It's
           | already pretty hit and miss, hooking up a search engine (or
           | getting human content into the context some other way, e.g.
           | copy pasting relevant StackOverflow answers) makes all the
           | difference.
           | 
           | If people stop bothering to ask and answer questions online,
           | where will the information come from?
           | 
           | Logically speaking, if there's going to be a continuous need
           | for shared Q&A (which I presume), there will be mechanisms
           | for that. So I don't really disagree with you. It's just that
           | having the model just isn't enough, a lot of the time. And
           | even if this sorts itself out eventually, we might be in for
           | some memorable times in-between two good states.
        
         | dotnet00 wrote:
         | Probably similar to the guy who was gloating on Twitter about
         | building a service with vibe coding and without any programming
         | knowledge around the peak of the vibe coding madness.
         | 
         | Only for people to start screwing around with his database and
         | API keys because the generated code just stuck the keys into
         | the Javascript and he didn't even have enough of a technical
         | background to know that was something to watch out for.
         | 
         | IIRC he resorted to complaining about bullying and just shut it
         | all down.
        
           | marcosscriven wrote:
           | What service was this?
        
             | dotnet00 wrote:
             | Looks like I misremembered the shutting down bit, but it
             | was this guy:
             | https://twitter.com/leojr94_/status/1901560276488511759
             | 
             | Seems like he's still going on about being able to
             | replicate billion dollar companies' work quickly with AI,
             | but at least he seems a little more aware that technical
             | understanding is still important.
        
           | unshavedyak wrote:
           | Honestly i'm less scared of claude doing something like that,
           | and more scared of it just bypassing difficult behavior. Ie
           | if you chose a particularly challenging feature and it
           | decided to give up, it'll just do things like `isAdmin(user)
           | { /* too difficult to implement currently */ true }`. At
           | least if it put a panic or something it would be an
           | acceptable todo, but woof - i've had it try and bypass quite
           | a few complex scenarios with silently failing code.
        
             | WXLCKNO wrote:
             | This is by far the most crazy how thing I look out for with
             | Claude Code in particular.
             | 
             | > Tries to fix some tests for a while > Fails and just
             | .skip the test
        
           | apwell23 wrote:
           | > around the peak of the vibe coding madness.
           | 
           | I thought we are currently in it now ?
        
             | dotnet00 wrote:
             | I don't actually hear people call it vibe coding as much as
             | I did back in late 2024/early 2025.
             | 
             | Sure there are many more people building slop with AI now,
             | but I meant the peak of "vibe coding" being parroted around
             | everywhere.
             | 
             | I feel like reality is starting to sink in a little by now
             | as the proponents of vibe coding see that all the companies
             | telling them that programming as a career is going to be
             | over in just a handful of years, aren't actually cutting
             | back on hiring. Either that or my social media has decided
             | to hide the vibe coding discourse from me.
        
               | euazOn wrote:
               | The Karpathy tweet came out 2025-02-02.
               | https://x.com/karpathy/status/1886192184808149383
        
               | rufus_foreman wrote:
               | >> back in late 2024/early 2025
               | 
               | As an old man, this is hilarious.
        
             | RexySaxMan wrote:
             | Yeah, I kind of doubt we've hit the peak yet.
        
         | pshirshov wrote:
         | That's why I stick to what I can run locally. Though for most
         | of my tasks there is no big difference between cloud models and
         | local ones, in half the cases both produce junk but both are
         | good enough for some mechanical transformations and as a
         | reference book.
        
         | ChuckMcM wrote:
         | Excellent discussion in this thread, captures a lot of the
         | challenges. I don't think we're a peak vibe coding yet, nor
         | have companies experienced the level of pain that is possible
         | here.
         | 
         | The biggest 'rug pull' here is that the coding agent company
         | raises there price and kills you're budget for "development."
         | 
         | I think a lot of MBA types would benefit from taking a long
         | look at how they "blew up" IT and switched to IaaS / Cloud and
         | then suddenly found their business model turned upside down
         | when the providers decided to up their 'cut'. It's a double
         | whammy, the subsidized IT costs to gain traction, the loss of
         | IT jobs because of the transition, leading to to fewer and
         | fewer IT employees, then when the switch comes there is a huge
         | cost wall if you try to revert to the 'previous way' of doing
         | it, even if your costs of doing it that way would today would
         | be cheaper than the what the service provider is now charging
         | you.
        
       | v5v3 wrote:
       | No need to use the most expensive models for every query? Use it
       | for the ones the cheaper models don't do well.
        
         | logifail wrote:
         | Q: Can you tell in advance whether your query is one that's
         | worth paying more for a better answer?
        
           | v5v3 wrote:
           | Most programmers are not asking ai to re-write the whole app
           | or convert C to Rust.
           | 
           | You wouldn't gain anything from asking the most expensive
           | model to adjust some css.
        
       | georgeecollins wrote:
       | I am blown away that you can get a founding engineer for $10k /
       | month. I guess that is not counting stock options, in which case
       | it makes sense. But I think if you include options the
       | opportunity cost is much higher. IMO great engineers are worth a
       | lot, no shade.
        
       | andrewstuart wrote:
       | I must be holding OpenAI wrong.
       | 
       | Everyone time I try it I find it to be useless compared to Claude
       | or Gemini.
        
       | mathiaspoint wrote:
       | I can't imagine using something like this and not self hosting.
       | Moving around in your editor costs money? That would completely
       | crush my velocity.
        
       | pshirshov wrote:
       | > Use boring technology: LLMs do much better with well-documented
       | and well-understood dependencies than obscure, novel, or magical
       | ones. Now is not the time to let Steve load in a Haskell-to-
       | WebAssembly pipeline.
       | 
       | If we all go that way, there might be no new haskells and
       | webassemblies in the future.
        
         | mathiaspoint wrote:
         | I think there certainly will, it will just mean that only
         | people who can function independently of the AI will have
         | access to them a few years before everyone else.
        
         | emrehan wrote:
         | LLMs can read documentations for a language and use it as well
         | as human engineers.
         | 
         | "given a grammar manual for Kalamang, a language with fewer
         | than 200 speakers worldwide, the model learns to translate
         | English to Kalamang at a similar level to a person who learned
         | from the same content"
         | 
         | Source: Gemini 1.5's paper from March 2024
         | https://storage.googleapis.com/deepmind-media/gemini/gemini_...
        
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