Pricing as proxy for PMF!
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https://open.substack.com/pub/simonw/p/i-think-anthropic-and-openai-have?r=88hnr&utm_medium=ios
The best advice I ever heard on pricing a product was that your customer should suck air through their teeth and then say yes. Uber’s budget overrun and Microsoft’s seat cancellations look like that effect playing out in practice.
Simon willison using notes on Uber and Microsoft reducing licenses of Claude Code due to budget overruns:
Somehow this fragment turned into headlines like Uber’s COO says it’s getting harder to justify the money spent on AI tokenmaxxing, because the market for stories about AI failures remains enormous.
The other popular story around this is Microsoft starts canceling Claude Code licenses, ostensibly to encourage their engineers to dogfood their own Copilot CLI agent instead - but The Verge reporter Tom Warren says “sources tell me the decision is also a financial one”, triggered by the June 30th end of Microsoft’s financial year.