2nd link doesn't work.
That would be a neat tool, to find the original article and see how many levels of AI summary it has gone through, a game of AI telephone!
I had thought about creating something like that for finding comments for articles. For a given article, display links to comments for HN, lobsters, reddit, etc. However, I feel I already waste too much time reading comments. I shouldn't make it easier and more tempting.
There's definitely a way to use Claude code that is token conscious.
I've tried throwing unsupervised agentic software factory workflows against the wall, and they burned through my tokens like nobody's business but didn't produce much.
Supervised, human-in-the-loop process on the other hand is much more productive but doesn't consume nearly as much. Maybe that's why everyone's pushing agentic approaches so much.
The current thinking is automated agents is what turns this from an industry in the tens of billions to a multi trillion dollar one. So yes you are right on the money, agents stimulate demand for this thing they've built.
At the enterprise level though, its going to be hard to want to use a service in which costs are not predictable, and keeping those costs under control requires employee training.
My experience as well... I've only hit Antrhopic's 5hr threshold a few times, and two of them was within a half hour of the window. Also, all three times I'd already accomplished a LOT.
I tend to work with the agent, and observe what's going on as well as review/test and work through results/changes. I spend a lot more time planning tasks/features than the execution, even using the agent as part of planning and pre-documentation. It works really well. I don't think people burning through the 5hr allotment in under an hour are actually reviewing/QC/QA the results of what they're doing in any meaningful way, and likely producing as much garbage as good (slop).
I'm really curious as to HOW the MS employees were using the agents as much as what they were doing.
I suspect subscription limits are quite a bit higher than the equivalent tokens their dollar cost could purchase. I similarly feel like I can get a lot done with a $20/mo Claude Pro subscriptions, but also can easily spend $10-20/day at API pricing with similar usage.
I've launched an internal demo of Claude Code and Deepseek on the same day and we burned through our monthly allowance for Claude in just over a week, with more than a half of that budget being spent in one day. With DS people are unable to go through that same amount of money in a month, not even close.
With that Claude feels like an expensive toy, while DS is a shovel, purely because developers do not feel like they are eating into a precious resource while using it. Also it does not feel like there is much of a difference in capability between Claude and DS-pro. DS-pro and flash do feel like sonnet/opus and haiku, but flash is still very-very capable.
My experience is, Claude Code burns way more tokens compared to other agents, probably to ensure high levels of perceived quality, which is, most of the times not worth the bloat for the user. The bloat works for Anthropic as an advertisement at the cost of your tokens.
Thus does kind of beg the question: If developers are being laid off because AI is better/faster/cheaper or makes all their people 10x or whatever fig leaf, what happens if the required tooling ends up being more expensive? From the investor’s point of view is the drag of employee costs better or worse than a ballooning expense item?
Lots of these places measure employee token use with managers having dashboards. It seems like performative code production rather than making anything useful.
I think whats funny is that employees were most likely already covering the cost for these tools because they are useful. Companies didn't believe employees were using these tools and now have forced their usage and no longer have the costs subsidized.
Similarly companies seem to reward high token usage as a sign of someone willing to play ball with AI and again have forced higher costs on themselves for people reward hacking or using tokens out of spite.
The way coding agent work is fantastically wasteful. All the megabytes of code are processed over and over and over, sometimes withing just one session.
There are papers describing KV cache precomputation for commonly used documents (e.g. KVLink), but, of course, it's not a priority for model providers: they'd rather sell you more tokens, also they would rather get to AGI/ASI first than optimize usage of existing models...
Microsoft poorly manages token use of most expensive models in a pilot. Then they use that failure to advertise/position their own Github Copilot agents to procurement teams, over the now widely validated Claude Code-based agents.
At least Codex is trying to win validation on merit.
Surely a company as large as Microsoft is actively attempting to build their own models. They couldn't possibly have expected to stake the future of their software development on the conditions of a third party company?
Okay, but what if you're not Microsofts size and don't have and R&D budget large enough to fund development of your own models and tools?
This is a warning to any company, not building their own AI, that AI assisted development could become really expensive really fast and most likely won't pay off. What Microsoft is suggesting is that the current price is to high, but it's still not high enough for e.g. Anthropic to be profitable, or AI coding tools are only as good as the developers using them. So you can't meaningfully do layoffs by replacing the developers with AIs, because the cost is to high.
How does Microsoft plan to fix CoPilot, so that the cost will be so much lower than Claude, that budget overruns won't be a problem for their own customer?
I expect in the next year or so, we'll stop seeing headlines like "Anthropic buys $15b of compute from SpaceX" and we'll start seeing headlines like "Uber's AI department licenses GPT 6.2 as the foundation for their internal model," or something like that.
Smaller companies will have departments that distill larger models into something more specifically manageable and useful for them. At least, that's my personal prediction :)
At one point there were rumours that they'd do that. They also have the rigts to oAI models for a few more years still, so they could always use that but apparently they're also compute starved (like anyone else).
I switched from Anthropic to OpenAI after spending ~$40K in equivalent token costs using Claude over 3 months.
I found Opus 4.7 to be slow and wasteful with token usage. It's shocking how inefficient it is with tasks like bash tool usage and web searching, delegating them to a dozen subagents only to get stuck and never return until you esc and intervene. That, in addition to all of the broken tooling Anthropic built in to limit token usage like the broken monitoring tool made managing Claude a chore. I was happy to pay $200/month for Opus 4.5 when they had more capacity, but 4.7 felt like a huge step back and no longer worth the price and inconvenience.
I remember an OpenAI employee comment on the GPT5.5 release post about how they specifically geared it towards long-horizon tasks and its been a breathe of fresh air in that regard. I have five two-week long sessions going right now and there's been no degradation in performance or efficiency. It's much better at carrying rules/learnings forward even in long-running sessions and grounding/refreshing itself in verified facts when it loses context.
Its funny because in two weeks I've gotten way more done with GPT5.5 with way fewer tokens and way less handholding. I think this goes to show how important tooling and the harness is and how a capable model like Opus 4.7 can be severely handicapped by bad product decisions.
This is an AI generated summary of a blog post (https://www.thelowdownblog.com/2026/05/microsoft-cancels-int...) which is a summary of an AI generated article (https://blazetrends.com/microsoft-cancels-claude-code-pilot-...) which is a summary of another AI generated article (https://www.themodelwire.com/article/microsoft-starts-cancel...) which is a summary of an article from The Verge (https://www.theverge.com/tech/930447/microsoft-claude-code-d...). I guess it would be better to link the Verge article instead.
The absolute state of the Hacker News main page in 2026. Thank you for taking your time to put it all together.
2nd link doesn't work. That would be a neat tool, to find the original article and see how many levels of AI summary it has gone through, a game of AI telephone!
I had thought about creating something like that for finding comments for articles. For a given article, display links to comments for HN, lobsters, reddit, etc. However, I feel I already waste too much time reading comments. I shouldn't make it easier and more tempting.
My bad. I had trouble finding the original source when I googled for it and grabbed a link. I was originally shown a screenshot of a x.com post.
I emailed dang to politely ask to make the link point to the Verge article since I can't update it.
https://archive.is/WfCta
boy i'm leaving the internet. sun is shining. was a good time here while it lasted.
The artificial centipede.
i swear i'm going to start an amish community and internet where we forbid any technological development past 2019
call me a luddite, i'll be wearing it as a badge of honor
Welp, this is the future we live in now
[dead]
There's definitely a way to use Claude code that is token conscious.
I've tried throwing unsupervised agentic software factory workflows against the wall, and they burned through my tokens like nobody's business but didn't produce much.
Supervised, human-in-the-loop process on the other hand is much more productive but doesn't consume nearly as much. Maybe that's why everyone's pushing agentic approaches so much.
The current thinking is automated agents is what turns this from an industry in the tens of billions to a multi trillion dollar one. So yes you are right on the money, agents stimulate demand for this thing they've built.
At the enterprise level though, its going to be hard to want to use a service in which costs are not predictable, and keeping those costs under control requires employee training.
There's no fucking training to mitigate a slot machine.
My experience as well... I've only hit Antrhopic's 5hr threshold a few times, and two of them was within a half hour of the window. Also, all three times I'd already accomplished a LOT.
I tend to work with the agent, and observe what's going on as well as review/test and work through results/changes. I spend a lot more time planning tasks/features than the execution, even using the agent as part of planning and pre-documentation. It works really well. I don't think people burning through the 5hr allotment in under an hour are actually reviewing/QC/QA the results of what they're doing in any meaningful way, and likely producing as much garbage as good (slop).
I'm really curious as to HOW the MS employees were using the agents as much as what they were doing.
I suspect subscription limits are quite a bit higher than the equivalent tokens their dollar cost could purchase. I similarly feel like I can get a lot done with a $20/mo Claude Pro subscriptions, but also can easily spend $10-20/day at API pricing with similar usage.
Feels about right.
I've launched an internal demo of Claude Code and Deepseek on the same day and we burned through our monthly allowance for Claude in just over a week, with more than a half of that budget being spent in one day. With DS people are unable to go through that same amount of money in a month, not even close.
With that Claude feels like an expensive toy, while DS is a shovel, purely because developers do not feel like they are eating into a precious resource while using it. Also it does not feel like there is much of a difference in capability between Claude and DS-pro. DS-pro and flash do feel like sonnet/opus and haiku, but flash is still very-very capable.
My experience is, Claude Code burns way more tokens compared to other agents, probably to ensure high levels of perceived quality, which is, most of the times not worth the bloat for the user. The bloat works for Anthropic as an advertisement at the cost of your tokens.
Thus does kind of beg the question: If developers are being laid off because AI is better/faster/cheaper or makes all their people 10x or whatever fig leaf, what happens if the required tooling ends up being more expensive? From the investor’s point of view is the drag of employee costs better or worse than a ballooning expense item?
That's very interesting to reconcile with the fact that not too far, Amazon employees feel incentivized to use as many tokens as possible.
Lots of these places measure employee token use with managers having dashboards. It seems like performative code production rather than making anything useful.
Speed without judgement always compounds badly.
I think whats funny is that employees were most likely already covering the cost for these tools because they are useful. Companies didn't believe employees were using these tools and now have forced their usage and no longer have the costs subsidized.
Similarly companies seem to reward high token usage as a sign of someone willing to play ball with AI and again have forced higher costs on themselves for people reward hacking or using tokens out of spite.
The way coding agent work is fantastically wasteful. All the megabytes of code are processed over and over and over, sometimes withing just one session.
There are papers describing KV cache precomputation for commonly used documents (e.g. KVLink), but, of course, it's not a priority for model providers: they'd rather sell you more tokens, also they would rather get to AGI/ASI first than optimize usage of existing models...
Cancellation effective June 30. This was a _pilot_ launched in December that accidentally consumed their 2026 yearly target spend on AI!
I expect the r/LocalLLaMA guys to be going nuts about this news.
Microsoft poorly manages token use of most expensive models in a pilot. Then they use that failure to advertise/position their own Github Copilot agents to procurement teams, over the now widely validated Claude Code-based agents.
At least Codex is trying to win validation on merit.
Surely a company as large as Microsoft is actively attempting to build their own models. They couldn't possibly have expected to stake the future of their software development on the conditions of a third party company?
Okay, but what if you're not Microsofts size and don't have and R&D budget large enough to fund development of your own models and tools?
This is a warning to any company, not building their own AI, that AI assisted development could become really expensive really fast and most likely won't pay off. What Microsoft is suggesting is that the current price is to high, but it's still not high enough for e.g. Anthropic to be profitable, or AI coding tools are only as good as the developers using them. So you can't meaningfully do layoffs by replacing the developers with AIs, because the cost is to high.
How does Microsoft plan to fix CoPilot, so that the cost will be so much lower than Claude, that budget overruns won't be a problem for their own customer?
I expect in the next year or so, we'll stop seeing headlines like "Anthropic buys $15b of compute from SpaceX" and we'll start seeing headlines like "Uber's AI department licenses GPT 6.2 as the foundation for their internal model," or something like that.
Smaller companies will have departments that distill larger models into something more specifically manageable and useful for them. At least, that's my personal prediction :)
Curb Your Enthusiasm theme starts playing.
> attempting to build their own models.
At one point there were rumours that they'd do that. They also have the rigts to oAI models for a few more years still, so they could always use that but apparently they're also compute starved (like anyone else).
I think tech companies are doing layoffs partly because they need to cover AI operating expenses.
I switched from Anthropic to OpenAI after spending ~$40K in equivalent token costs using Claude over 3 months.
I found Opus 4.7 to be slow and wasteful with token usage. It's shocking how inefficient it is with tasks like bash tool usage and web searching, delegating them to a dozen subagents only to get stuck and never return until you esc and intervene. That, in addition to all of the broken tooling Anthropic built in to limit token usage like the broken monitoring tool made managing Claude a chore. I was happy to pay $200/month for Opus 4.5 when they had more capacity, but 4.7 felt like a huge step back and no longer worth the price and inconvenience.
I remember an OpenAI employee comment on the GPT5.5 release post about how they specifically geared it towards long-horizon tasks and its been a breathe of fresh air in that regard. I have five two-week long sessions going right now and there's been no degradation in performance or efficiency. It's much better at carrying rules/learnings forward even in long-running sessions and grounding/refreshing itself in verified facts when it loses context.
Its funny because in two weeks I've gotten way more done with GPT5.5 with way fewer tokens and way less handholding. I think this goes to show how important tooling and the harness is and how a capable model like Opus 4.7 can be severely handicapped by bad product decisions.
AI slop ruined a story about AI? This thread is a story about itself.