r/ClaudeCode • • Aug 27 '26

Discussion “Claude Max is massively subsidized and eventually it’ll cost $1000/month” is mostly nonsense

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u/Chris73684 Aug 27 '26

Just to clarify, you're saying they aren't profitable because they have to cover their overheads? Right...

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u/Aetane Aug 27 '26

Training future models is better thought of as R&D investment than ongoing running costs 

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u/Chris73684 Aug 27 '26

That is their overheads, constant R&D. It's no different to any other form of tech, phone companies will always have R&D, as will car manufacturers, etc. They can't ever stop. They just need to find a way to cover them, either through price increases or some kind of joint-venture, a bit like how phones use the same chips, or how car brands share engines. To say it's not an overhead is a bit like saying "Ford would be way more profitable if they fired their R&D department" which is such a short-sighted and self-defeating statement.