Anthropic is actively competing with open-source AI by offering deep discounts on cached prompts, sometimes undercutting open-source costs.

In three years, companies will spend 2-5x an engineer's salary on Anthropic (or equivalent AI) API costs, up from approximately 3.8% of salary today.

“Between maybe two and 5x be the two and 5x salary.”

90% of simple automation requests are best solved with a Claude skill.

“90% of the time the answer is a Claude skill, I will say.”

Anthropic is competing with open source by offering massive discounts on cached prompts, making its API potentially cheaper than open source when prompt cache hit rates are favorable.

“What Anthropic is doing here aggressively is fighting back at open sources and trying to get you to cash your prompts which are very expensive. And they offer such a massive discount on cash prompts if they work for you that it actually can be cheaper than open source.”

AI model pricing has increased over the last 6-9 months, contrary to the prior trend of rapid cost decline.

“The in the last 6 to9 months like every model actually increase their per.”