Vishal Talasani

The A.I. company Anthropic is expanding in New York City, with plans to lease a 16-story building in Lower Manhattan. nyti.ms/44BFLQ9

🚨 BREAKING: Anthropic is "confident that in the coming days [Fable 5] will become available again" - Anthropic's International Managing Director we might be back

Personally, I think Anthropic needs to raise their prices. It's obviously bad that Anthropic silently throttled Claude Code, but you have to sympathize with their position. Demand for their product is much higher than they can support. They have 3 options: 1. Make no changes. Claude will continue to have serious reliability issues. 2. Degrade performance. Users will experience a worse product. 3. Raise prices, many users will churn to other providers. Importantly, they must choose at least one of these paths, independent of how much more money they're able to raise. Anthropic is compute limited, and there are no obvious ways for them to increase the compute available to them in the short-term. Option 1 is a non-starter, many of Anthropic's serious customers (e.g. enterprises) will churn as product outages continue to increase. Degrading performance is also bad, Anthropic is losing their lead as the cutting-edge provider, and users are very sensitive to any product regression. Raising prices will price out many users from Claude Code, but will be net-better for enterprises, who prioritize reliability and performance. It will also help retain Claude's (small) edge in being the best coding model. In practice, Anthropic is doing a mix of all 3 options, which imo is the worst outcome. They are silently degrading their product, restricting Claude Code to more expensive plans, and rolling back changes when users complain. As a result, they now are faced with performance concerns ("is Claude Code worse today"), are rejecting lower-end customers, and have worst-in-class reliability. It's painful to rip the bandaid off and just raise prices. But they need to do it at some point, and it's better to do it before their brand suffers.