All right, fellas. It's happening. The

cracks are starting to show. The

foundations looking a little bit shaky.

I'm talking talking about the AI

economy, the token economy. Uh the first

one comes courtesy of course of

Anthropic, everybody's favorite, the

good guys, am I right? I love their

lawyers. What ended up happening just a

couple days ago is Anthropic did

something called a painted door test. At

least that's the term I've always heard.

I think I've seen other people use fake

door test where you actually show

alternative pricing on your page to see,

hey, how much more money could we make

if we charged people more? How many more

people would leave the pricing page? So,

let me give you a a hypothetical. Let's

say that you raised the cost of your

product by 10%. And a,000 people visit

your pricing page. Typically, you'd get

a 100 customers out of your thousand

customers. But now, with your raised

prices, you only get 95 customers. But

of those 95 customers, you make more

money. So you say, "Hey, the area under

the curve is worth it. We're going to

lose a couple customers, but we're going

to gain more money." This is kind of the

idea of a painted door test. But

Anthropic did something a bit different.

Instead of doing a price change, they

just simply removed clawed code usage

from the $20 plan. See, in a typical

painted door test, after someone says,

"Okay, we'll pay this price." They're

like, "JK, bro. You're super special to

us, so you get actually a reduced price

because we love you." Well, this one,

there's an entire group of people that

when they visited this page saw they

couldn't use Claude code for $20 a

month. They paid $100 a month. It just

tricked some small percentage of people.

I don't think anyone's surprised by

this. And the people that are surprised

by it, you always hear kind of the same

thing. Well, they're making money off of

inference. like every time they do like

a request call, of course they make

money. It's like, yeah, I guess if you

measured how much a shoe cost by only

paying the employee to sell the shoe,

then you're like, "Yeah, you're making

money off of every shoe. They're making

money off of every request." Yeah, that

makes sense, but you're not actually

considering the real cost. Remember,

people that used Opus 45 are now using

Opus 46. Nobody's using Opus 47. A kind

of tarted model. No, no one really likes

that one. But that means all the cost

that went into 45 if they didn't recoup

that in inference cost 45 just cost them

money. And this is obviously what's

happening. Open AI got 122 or $120

billion investment and that's enough

money to run for 18 to 24 months. That

is like 5 to7 billion every single month

in the hole for the next 18 to 24

months. They had to do this test because

they have to know how much money they

can make because if they don't make some

sort of change, they're going to

continue to lose billions of dollars.

Now, if this just happened by itself,

I'd say, "Hey, Claw just needs to make

more money. They need to start becoming

more competitive because they're

competing against OpenAI." And then I'd

be like, "Okay, that's that's just

that." But this isn't the only case of

this happening because just a couple

days ago, guess who else decided to make

a bit of a price change? Microsoft. Oh,

beautiful Microsoft. I love Satia. I

love co-pilot. Isn't co-pilot is this is

this the greatest? You're probably

confused when I say co-pilot because

you're probably thinking of like one of

their 50 services. I I'm talking about

the GitHub the GitHub co-pilot in this

case. See the GitHub copilot you used to

pay some sort of amount of money and

then you could perform actions on

behalf. You had some sort of amount of

actions you could execute. Well, what's

the problem with that? Not every model

cost the same. If you're thinking about

composer too fast from cursor, that

thing costs like nothing. When you're

thinking about Opus 47, that costs a lot

more. We're talking like 20 times more

the cost. So obviously Co-Pilot, they

had to make some sort of reduction. And

that's what they did. You no longer just

get some amount of executes. You get

token usage because if you use a more

expensive model, well guess what? You

got to use more of your tokens.

Therefore, you won't get as many calls

out of it. This is a change. It needs to

become more economically viable. But

before that, to pay for all my tokens,

sponsor time.

>> Look at all these engineers sitting at

their neat little desks. It takes dirty

work to keep a code base clean. Every

day, sickos are out there committing

unreed code. And when that happens,

llinters won't save you. You need

someone like me.

>> Let's go.

>> Feature free scrumbag. Who you calling

scrumbag? What's this slop you're trying

to push? Unnecessary comments. Global

state nested turnaries.

>> H my bad. I didn't even read the code

yet.

>> You disgust me. Step away from the

keyboard.

>> Just let me explain.

>> Is that a mouse? HE'S MERGING A PROD.

YOU HAVE THE RIGHT to remain silent.

Anything you push to GitHub Canon will

be used against you. You have the right

to a debugger. But if you cannot afford

one, a public stack trace will be made

available to you.

And one more code criminal off the

streets where they belong. HR.

Look, I didn't even I know I didn't

review any of the code, but I was going

to have Code Rabbit review it from the

start with oneclick fixes install

enforcement. I don't need Merge Cop. I

would never merge unreviewed code, but a

first pass with Code Rabbit always makes

things go faster. Actually, you can try

it too at code rabbit.ai.

>> Next week on Merge Cop.

>> The Diffler's out there, and I'm going

to be the one to deprecate them.

See, the difference between Microsoft

and Anthropic is Microsoft makes money.

I know, crazy concept for Anthropic, but

Microsoft makes a lot of money. Whether

you like it or not, they're one of the

biggest companies in the world. And

therefore,

they can actually kind of take like a

bit of a nose dive for a while

accumulating users. But even at this

point, they're going, "Hey, we can't we

can't do this. We got to make more. This

this is silly. What's going on here?

This doesn't even make sense according

to Microsoft. Now the real winner

honestly from all of this is Google.

Classic Google. They are pouring like a

hundred plus billion dollars a year into

AI and they can just do that. And guess

what? After they pour hundred billion,

$200 billion into AI, they still make

money. That's wild. Like they can do so

much money for the next year after year

and they don't have to worry about will

investors still find me attractive?

That's probably why you're not getting

the same level of hype coming from

Google that you get from these

companies. Like, just think about that

for a second. Google's also competing on

the frontier. Google's also attempting

to win the market. Google's also trying

to convince everybody that their AI is

the best AI, that they're going to be

able to shepherd it and take it into the

future despite the fact of inventing the

T and GPT and somehow fumbling the bag

and not being the first one to market.

Nobody knows the answer to that one. And

AI is really expensive. Uber just got

done claiming that within four months

they spent their entire year's budget on

AI. Gee, I can't believe this is

happening. How could you tell every

employee to maximally use AI? By the

way, we're judging you on AI usage. Oh

my gosh, you're using too much AI. How'd

that happen? What the hell? You're not

supposed to be using a year budget in 4

months. What are you even doing? What

are people doing with all those tokens?

I don't even know. Like, I don't think

we're going to be like, "Well, back it

up everybody. Uh, we're not going to use

AI anymore. You're going to have to go

back to hand coding everything because

AI is just not economically viable. No,

no, no, no, no, no, no, no, no, no, no.

They will find a way. Sure, it may be in

a couple years, but you know what?

They're going to find a way to make this

thing viable. But for now, we're

starting to see the cracks. Things just

can't be as free as they once were, and

the amount of usage you're going to be

getting is clearly and obviously going

down. I don't want to be the person

that's like, "Oh, Mr. Anti-AI for all

reasons." Like that's why I make this

video to show you how ridiculous their

marketing is. This is why they do such

hyped out marketing. This is why Daario

is constantly telling you, "Hey, you're

out of a job here very, very soon. You

you you Yeah, we're going to take your

job." I feel super bad about it. Oh, I

just feel so bad about me taking all of

your money. I'm so sorry. It's so

dangerous. But this is the reason why

they're doing it. They need to raise

money. This is why Google doesn't do it.

They don't need to raise the same kind

of capital that uh Daario and Sam need

to raise. I think there's plenty of

great uses for AI. I I do use it on the

regular. Even though I participate in

Daario's least favorite activity, hand

coding every single I'm a tried coder.

Okay, I like triad coding, but I also

like AI. There's plenty of times that

it's actually super convenient. And so

ultimately, I just hope to kind of bring

a a bit of a more middle ground to

things because tech is exciting. Like

think about this for a second. We get to

build like anything that your mind can

come up with. Like that is such an

incredible privilege to have. Most of

the world was spent dying because you

stepped on some piece of metal that you

didn't see. And oh, sucks. You got

tetanus now. Looks like you're dead.

Dysentery on the Oregon Trail. Yep. Too

bad. Shouldn't have been doing whatever

you were doing, which was called living

cuz now you're dead. Instead, we

actually get the opportunity to build

all this stuff. And for me, this is the

most exciting time period to ever live

in because now I get to just have any

kind of personalized experience. Like a

quick pro tip, you're learning

something, dude. If it's open source,

clone down the repo, open up AI and say,

"Hey yo, based on the code, give me an

example of how to do this. Explain that.

Explain this." It's like personalized

documentation. Super cool. Anyways, I

wanted to end on a high note, you know,

uh, just because I just feel like the

yapping that's going on is just so kind

of jaded. The name is the tokenogen.