I avoided Claude code and such the first few months because I thought it was all billed by the API. Which I knew was not worth it to me at all.
Then I realized I was an idiot and this was magic.
But it now seems more like an introductory offer to use the API, as opposed to an alternative product / way to use their API product.
I thought it would get increasingly expensive, like say the $200 plan becomes $400.
Switching these plans to API metering doesn’t feel like it’s a separate product anymore?
But it was well understood that the subscription was heavily subsidized. Whether or not it was a "separate product" doesn't matter as much as the fact that pricing was not sustainable.