Why Cursor's flat-fee pricing could lead to its downfall

[bigyabai]

> Cline/OpenRouter’s monetization model is simple: Add a 5% markup on top of anything you pay your API provider.

If you read this and think "Oh, nice business!" then you are exactly the reason why DevOps is a specialized role that we don't assign to developers.

[al2o3cr]

Speaking of "incentive alignment", what's the incentive for providers using the "cost plus" billing model to reduce hallucinations / bogus outputs?

Seems like they're pushed in the same enshittified direction that search has been, where it's optimized to increase traffic rather than produce answers efficiently.