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pembrook 3 hours ago

API pricing drops DRAMATICALLY in enterprise agreements.

As with pretty much anything priced on volume/usage.

Enterprise deals are negotiated ad-hoc, the listed pricing is simply a jumping off point for the final negotiated discount.

If you’re going to give 20,000 employees Claude code you are not going to be spending $1B per year on Anthropic tokens as if you gave everyone an individual API key. Just as Anthropic isn’t paying AWS SES $10,000,000 to send 1 email update to their massive user base when the next Claude version drops.

taude 3 hours ago | parent | next [-]

This isn't true at the moment, though. So far there hasn't been the negotiating power. What happens is you end up capping usage for employees at a fixed amount. I think eventually, prices will come down and there will be discounts, but for enterprise accounts at least of our size (<5000), we're paying almost 100% retail, which kind of sucks, because it's expensive, and pretty easy to burn $50 to $100+ in a day, if you're not careful. In fact we got pushed off the former plan to the token-utility one at the last contract negotiation.

Going to be interesting to determing the metrics we give to engineers for determining whether the spend on this is worth it. Measuring PRs, lines of code committed, commits fully generated by agentic workflows, etc.....

simonw 3 hours ago | parent | prev | next [-]

> API pricing drops DRAMATICALLY in enterprise agreements

Do you have any numbers or reports to back that up?

lrae an hour ago | parent | prev [-]

> Just as Anthropic isn’t paying AWS SES $10,000,000 to send 1 email update

How much do you think emails cost? That number is just so far off?

But besides that, running SES is also quite a bit cheaper than SOTA ai models with high demand (and comparatively) no competition. And quite a bit more pressure to make money (soon).