[likium]

For $10 flat per request up to 128k tokens they’re losing money. 100 * 100k is 10m tokens. At current api pricing that’s $50 input tokens, not even accounting for output!

[brushfoot]

And a request can consume more than 128k tokens.

A cloud agent works iteratively on your requests, making multiple commits.

I put large features into my requests and the agent has no problem making hundreds of changes.

[everfrustrated]

You didn't account for cached input tokens - some % of input tokens will be follow-on prompts which are billed at the cheaper cached token rate.

[indigodaddy]

I mean aren't they losing money on everything even the API? This isn't going to end well with how expensive it all really is.

[whynotmaybe]

Having worked some time in huge businesses, I can assure that there are many corporate copilot subscribers that never use it, that's where they earn money.

In the past we had to buy an expensive license of some niche software, used by a small team, for a VP "in case he wanted to look".

Worse in many gov agencies, whenever they buy software, if it's relatively cheap, everyone gets it.

[port11]

It might be a gym-type situation, where the average of all users just ends up being profitable. Of course it could be bait-and-switch to get people committed to their platform.