Claude Almost Bankrupt Me...

About this Video

• Video Title: Claude Almost Bankrupt Me...
• Channel: Theo - t3․gg
• Speakers: Theo
• Duration: 00:16:18

Introduction

This video details Theo's experience with the AI model Claude, which almost bankrupted his company due to unexpectedly high usage costs. He discusses the initial success of his product, T3 Chat, and the subsequent challenges posed by the pricing and usage of Claude, eventually leading to changes in pricing and usage limits to ensure the company's financial stability.

Key Takeaways

• Unexpected Claude Costs: The initial pricing of Claude resulted in daily bills nearing $600, largely due to a small percentage of highly active users exceeding the 500-message weekly limit.
• Model Switching: To address the high costs, Theo's team switched from Claude to the faster and significantly cheaper 40 Mini model, hosted on Azure for enhanced speed.
• Pricing Changes: To accommodate continued Claude usage while maintaining financial stability, usage limits were implemented (1,500 messages/month for T3 Chat subscribers, 100 messages/month for Claude). Existing subscribers received 250 free Claude credits.
• Transparency and Community: Theo highlights the positive community response to the changes, emphasizing the importance of transparency in his company's operations.
• Future Plans: Future plans involve exploring a credit system to manage usage across various models, ensuring affordability and value for users while maintaining profitability.