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Tokens are getting more expensive
the goal with this is to generalize what happened with claude code & windsurf to the fatal flaw in the idea that “models getting cheaper” will bail out consumer ai margins
but after 18 months, margins are about as negative as they’ve ever been… windsurf’s been sold for parts, and claude code has had to roll back their original unlimited $200/mo tier this week. this is the short squeeze that forced windsurf to get margin called [insert thing] — and any “flat rate subscription + useful token intensive” business model startup is looking down the barrel of. thank you to mark hay, ben mains, nikunj kothari, bryan bischof, andy jiang, vedika jain, and aman kishore for reading drafts of this
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