Pretty bad decision on his part. I've been telling other engineers within my company who felt threatened by AI that this would happen. That prices would rise and the marginal cost for changes to big codebases would start to exceed the cost of an engineer's salary. API credits are expensive, especially for huge contexts, and sometimes the model will use $200 in credits trying to solve a problem that could be fixed in an hour by a good engineer with enough context.

It kind of reminds me of the joke where a plumber charges $500 for a 5 minute visit. When the client complains the plumber says it's $50 for labor and $450 for knowing how to fix the problem.

A good lesson for all - I always really liked the Picasso version:

In a bustling restaurant, an excited patron recognized the famous artist Picasso dining alone. Seizing the moment, the patron approached Picasso with a simple request. With a plain napkin and a big smile, he asked the artist for a drawing. He promised payment for his troubles. Picasso, ever the creator, didn’t hesitate. From his pocket, he produced a charcoal pencil and he brought to life a stunning sketch of a goat on the napkin—a clear mark of his unique style. Proudly, he presented it to the patron.

The artwork mesmerized the patron, who reached out to take it, only to be stopped by Picasso’s firm hand. “That will be $100,000,” Picasso declared.

Astonished, the patron balked at the sum. “But it took you just a few seconds to draw this!”

With a calm demeanor, Picasso took back the napkin, crumpled it, and tucked it away into his pocket, replying, “No, it has taken me a lifetime.”

Even if you take it as true that prices have risen recently, and may continue to rise as the VC subsidies dry up, they will fall again long-term. Inference will get more power efficient with model-on-chip solutions like Taalas and God willing we will get cheaper and cheaper renewable energy.

Despite this I don't think engineers should feel threatened. As long as there is a need for a human in the loop, as today, there will still be engineering jobs. And if demand for engineering effort is elastic enough, there could easily be even more jobs tomorrow.

Rather than threatened, I think engineers should feel exposed. To danger, yes, but opportunity as well.

>That prices would rise

Competition will prevent that from happening. When anyone can host open models and there is giant demand for LLMs companies can not easily raise token prices without sending a lot of traffic to their competitors.

> the model will use $200 in credits trying to solve a problem that could be fixed in an hour by a good engineer with enough context

So the price for fixing the problem is equal. Sounds like a great argument for AI.