If AI wins, don't AI companies lose?

Question

Let's play it out in the case of software engineers.100 SWEs all running Claude Code. Okay, company is 10x more productive than before.Now, company cuts 90% of SWEs because AI makes 10 engineers as productive as 100 engineers.Yay, company saves 90% of engineering costs.But now, 10 engineers run Claude Code. And now Claude revenue drops by 10x multiple?So if AI gets good, it will reduce the very engineering headcount that AI companies depend on, right?

mrln · Accepted Answer

Well, if the AI really is that good, what's stopping the AI Company from charging just slightly less then the 90 saved engineers cost?

nr378 · Answer

100 SWEs running Claude Code generating 400mn tokens/mo = 400mn * $25/mn = $10,000/mo of revenue for Anthropic
10 SWEs running Claude Code generating 400mn tokens/mo = 400mn * $25/mn = $10,000/mo of revenue for Anthropic
If AI can make 10 engineers a productive as 100, then AI companies bank at least the same revenue.

smt88 · Answer

No. First of all, AI companies make money per token, not per user. The unlimited plans are all dead or dying.Second, they can increase prices if they're really killing jobs. The price for a model that can kill 1 job is much lower than the price for a model that can kill 100.

SonOfKyuss · Answer

If you get into a situation where you are dependent on any tool for 90% of your engineering output, the maker of that tool has a lot of leverage when it comes to setting prices. So my guess is that if we get into that situation, the AI companies will be able to set prices to make sure they don&rsquo;t lose money.