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256BitChris 11 hours ago

GitHub doesn't have access to its own models so it has to pay the prices of the model it uses.

People confuse price with cost all the time. The price of Opus has dropped from $75/1M output tokens to $25. That's the price. The cost is much lower and according to Dario, about a month ago, they had about a 73% margin.

I don't understand how anyone would use GitHub copilot...it's basically running a custom harness and using close to API pricing for Opus. This is why Microsoft is cooked in this game.

But yeah, I don't understand why people switch from subscription to API prices for Claude. They're way higher, but again that's price and not necessarily the cost to Anthropic to serve.

riffraff 9 hours ago | parent [-]

> according to Dario, about a month ago, they had about a 73% margin.

Do you have a source for this? I missed this and it does not match my impression.

SatvikBeri 8 hours ago | parent [-]

Not OP, but Dario said on Dwarkesh's podcast 3 months ago that their gross margins are "significantly higher than 50%"