AI coding tools like Claude Code cost companies over $1,000 in processing for every $100 user subscription—heavy subsidies mask unsustainable economics as LLM productivity gains hit limits.

Anthropic/OpenAI may be spending more than $1000 for every $100 you pay them

For reasons that will remain hidden, we resume writing about Generative AI/LLM after a hiatus of 15 months (that one from October 2025, and the one from June 2025, don’t really count as serious pieces). Today, the first of two articles about “coding with Large ‘Language’ Models”, as coding with LLMs is positioned as the ‘killer app‘ for LLMs. We interrupt this program for a short digression on Anthropic’s recently released blog post When AI builds itself. Did Anthropic perchance hire Google mark...