The AI Free Lunch Is (Almost) Over

This article examines the evolving pricing strategies of AI companies like Anthropic, OpenAI, and GitHub, drawing parallels to the subsidized pricing model used by food delivery startups (e.g., Foodora, Uber Eats) that eventually led to price hikes. The author argues that as AI coding tools like Claude Code and GitHub Copilot become essential, companies are tightening rate limits and introducing higher-priced tiers, signaling the end of the 'free lunch' era. The piece discusses unit economics, user distribution, and market capture, concluding that heavy users will soon face higher costs as subsidies disappear.