alt Hacker NewsI haven't seen anyone claiming that API prices are subsidized.
At some point (from the very beginning till ~2025Q4) Claude Code's usage limit was so generous that you can get roughly $10~20 (API-price-equivalent) worth of usage out of a $20/mo Pro plan each day (2 * 5h window) - and for good reason, because LLM agentic coding is extremely token-heavy, people simply wouldn't return to Claude Code for the second time if provided usage wasn't generous or every prompt costs you $1. And then Codex started trying to poach Claude Code users by offering even greater limits and constantly resetting everyone's limit in recent months. The API price would have to be 30x operating cost to make this not a subsidy. That would be an extraordinary claim.
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Yeah, subscriptions used to be extraordinarily generous. I miss those days, but the reinvigoration of open weight models is super exciting.
I'm still playing with the new Qwen3.6 35B and impressed, now DeepSeek v4 drops; with both base and instruction-tuned weights? There goes my weekend :P
The claim that APIs are subsidized is very common.
eg:
Token prices are significantly subsidized and anyone that does any serious work with AI can tell you this.
https://news.ycombinator.com/item?id=47684887
(the claims don't make any sense, but they are widely held)