"But but but "Jevons paradox" applies here as the cost of generating tokens falls, AI usage will dramatically increase meaning we need to build more data centers!"
Except that isn't true and the token cost isn't going down and even by building more data centers, these employees are still generating massive bills and Microsoft is upset that they have realized that its expensive.
The worst part is, this gives the illusion of "productivity" as employees waste more money and spend more tokens at the Anthropic casino.
Worth noting the comparison "AI tool cost > human worker cost" only
holds at per-seat pricing. Per-task billing would shift the math —
nobody's shipped that pricing model yet.
I’m not convinced that Microsoft is terminating its Claude Code subscriptions from a cost perspective, but rather that they’d prefer teams dogfood their own GitHub Copilot tooling instead. This is similar to AWS pushing Kiro internally.
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[ 3.0 ms ] story [ 19.7 ms ] threadExcept that isn't true and the token cost isn't going down and even by building more data centers, these employees are still generating massive bills and Microsoft is upset that they have realized that its expensive.
The worst part is, this gives the illusion of "productivity" as employees waste more money and spend more tokens at the Anthropic casino.