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Free newsletter: AI's business model is inherently broken. Both OpenAI and Anthropic are discussing potential price cuts to to the cost of their models for enterprises as they allow their subscription users to burn $8k to $14k in tokens for $200 a month. www.wheresyoured.at/brokenomics/

Friday brought new drama, as Anthropic was forced to cut access to its new Fable and Mythos models to non-US citizens, both inside and outside the country. The entire situation is a mess, and a direct result of Anthropic's disingenuous doomer marketing. www.wheresyoured.at/brokenomics/

The entire shitshow is a self-inflicted wound for the ages. Anthropic, after hyping up the *very normal LLM capabilities* of Fable and Mythos, is now learning what happens when someone believes you. www.wheresyoured.at/brokenomics/

The Fable saga is only a distraction from another more pressing problem for the AI industry — that none of their business models work. It only took three months of token-based billing for Anthropic and OpenAI to talk about price cuts. Customers are in revolt. www.wheresyoured.at/brokenomics/

In a little under three months, Anthropic and OpenAI’s customers are in mutiny after being shifted to a token-based billing model where they pay the actual cost of AI. This is terrible timing for two near-IPO companies that cannot afford to have their growth slow. www.wheresyoured.at/brokenomics/

After a few months of paying the actual cost of AI via token-based billing, an increasingly-anxious conversation has begun about AI's ROI. Per Cisco's Jeetu Patel, the costs of AI tokens are far higher than the actual value that these tokens are generating at scale. www.wheresyoured.at/brokenomics/