AI subscriptions are dead
Claude Fable 5 will only be on the Anthropic subscription until June 22nd. After that, you will need to pay for usage per token
This will be the start of a much larger trend
Frontier models will no longer be included in subs
You’ll pay a fee and it will only get you access to older, much cheaper models
If you want access to that dank AI sour diesel, you’re going to need to pay for every token you use. No more subsidies
And it make sense. The subsidies were just a Ponzi scheme
For those that don’t know, when you pay $200 a month for an AI sub, you get thousands of dollars of tokens
These AI companies actively lose tremendous amounts of money because of these subscriptions. GDPs of most countries every year are lost on your $200 Claude Max sub
The investor money is running dry. IPOs are coming because of this. And with IPOs need to come profitability
The golden age of paying $200 a month and being able to code on 40 Claude Code instances and getting a usage reset every 5 minutes are about to die
The party couldn’t continue ever. You can’t just leverage the entire global economy for years and expect nothing to break. Now it’s time to pay up
Means a few things:
1. Time to be responsible when it comes to which models you use. You don’t need Fable 5 for GPT 5.5 Xhigh for everything. Build the skill of knowing when to use cheap models
2. Local LLMS/hardware will come even more in demand. I’m currently running GLM on my Mac Studio. It’s great. Is it Fable? No. But it gets the job done for free on simple tasks. Learn about local LLMs
3. This is the beginning of the wealth gap expansion. Those that can afford to spend $10,000 a month on Fable 5 will build incredible products that eat up more and more of the economy. Those that can’t afford Fable 5 will have an insane disadvantage
4. The government will need to step in eventually. There will be too much civil unrest. I hope the answer isn’t free money. That won’t do anything. I hope the answer is education/access to AI resources for ALL. Universal Basic Opportunity
5. You need to seriously reconsider where your money goes every month. If you are complaining about AI prices and in the back of your mind you know your skill set is becoming quickly irrelevant, all while spending money every month on Netflix, Xbox Live, Paramount +, drugs, DoorDash, Uber, and other things that bring nothing positive to your life, you are simply doing it wrong. AI is an investment in yourself. It’s an investment in your relevance to the global economy. You need to make sure you make that investment
The pieces on the board are quickly moving around. The rules are changing. The battlefield is shifting. If you’re not strategizing accordingly, you’re cooked.
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