When devs spend $200 on a Claude plan, they consume about $5,000 in compute. That is right. It is heavy subsidization by Anthropic. Remember Google/Amazon/Nvidia/ Microsoft & others are funding Anthropic and they are buying back cloud services and GPUs from the same vendors. On the books, it seems Google, Amazon and Nvidia are all making profits via AI, but the reality is this is just circulating money with heavy subsidization hoping to trap retail, pension funds, Govt funds via IPO route.

I never thought I would use Warren Buffett or some other fund manager/investment banker as an example as I dont like em much (personal view), but some of them are sitting on massive cash invested in the money market/T-bills. You have to wonder what scared them so much about AI. Don’t they love money? Why are they passing up this AI opportunity and staying on guard? Think about it, some of the most cunning people in the investment world are extremely cautious.

Somebody is going to ask the source for $200 & $5000 numbers etc, it is here

https://www.briefs.co/news/uber-torches-entire-2026-ai-budget-on-claude-code-in-four-months/

https://www.forbes.com/sites/annatong/2026/03/05/cursor-goes-to-war-for-ai-coding-dominance/ (numbers are here [ https://archive.is/MRdRN paywal free link ] )