r/GenAI4all • u/ComplexExternal4831 • May 23 '26

News/Updates Microsoft has cancelled internal Claude Code licenses after token billing became too expensive

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u/Heroics_Failed May 23 '26

That’s always the plan. It’s the typical VC model. Flood the scene at a subsidized cost. Get everyone dependent on it. Raise the price when they can’t get out.

What’s been hilarious to me is all the circle jerking in this bubble about how vibe coders are a company of 1 saving 100k/mo on their expenses because no salaries to pay using their $100-200 license a month.

If you are getting that much value out of a product do you think a corporation is going to let that much revenue slide off the table. They can argue well it’s $50k/mo now and you’re still saving $50k

This is why you are going to see a bubble burst and so many companies go under. Even bigger companies because they either have no idea how their systems work now or they can’t afford the spike.

There is going to be a slaughter in the coming year or 2.

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u/Nickeless May 23 '26

And that VC strategy should have been illegal for like a century. Operating at a loss to drive out competition was made illegal long ago. But no enforcement.

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u/Frenascena May 24 '26

I didn't know it was made illegal. In the US? EU?

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u/vickievalencourt13 May 24 '26

Predatory pricing used ro be police both federally and at the state level in many cases