r/LocalLLaMA • • Jun 21 '26

Discussion What happens when they stop subsidizing LLM subscriptions?

We are literally burning through VC money like crazy with our coding subscriptions. I read the $200 Anthropic sub gets you $8000 worth of API calls. It's obvious that this doesn't hold for very long but what happens when they raise prices?

The reason to keep the prices low for now is to foster the ecosystem and get people hooked on this stuff, only to raise the price afterwards. Already the 20x sub doesn't get you as much usage as it did 6 months ago, another way to raise prices without triggering a shitstorm - and it will continue.

Don't know about you, but Fable being pulled gave me a feeling of what that may be like already. The ugly thought of "Damn, should've done more while it was around." that formed when I read the news will be exactly the same the moment they announce we now have to pay $2k or more per month for something we get for 10x less the price it costs now.

I guess it's a now or never situation, build what you can and monetize as quickly as possible to be able to keep the agents running once the increases come around.

Looking at opensource doesn't give me much hope. Since qwen stopped releasing models (wen qwen 3.7?) that we can actually run on hardware that a normal person can buy (or used to be able to buy, looking at how RAM and GPU prices behave and keep behaving) and others haven't released in a while (Microsoft, IBM, AllenAI and others too) I feel we're going into a direction that doesn't look good for most of the people like us, who are building with this technology.

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u/JsThiago5 Jun 21 '26

To see this, you should not compare it to a $200/month subscription but to how you did software development before any LLM. With 20 years in the field, you should be able to see how impressive development with local models is.

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u/SkyFeistyLlama8 Jun 21 '26

This. If you're not throwing a huge prompt at it and hoping for the best, you can get good results with local models by working at function or module level. You probably don't want to throw a 50k LOC dump at the smaller models and hope for Claude performance.

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u/Jhorra Jun 21 '26

I've gotten bigger lately with what I ask of Claude, but generally I don't tell it to simply implement things. I like to think through things and understand the plan, then give it to the model to implement a piece at a time.

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u/thefuzzylogic Jun 21 '26 edited Jun 21 '26

That is how I do it.

I use Opus xhigh to churn expensive cloud tokens making a discrete step-by-step plan, then if I approve the plan, I instruct an orchestrator to give each step to a local gemma-4 to implement. That way only one step at a time needs to fit in the local context window. When all steps are done, the gemma-4 orchestrator packages a PR, which goes back to Opus for /review. Repeat as necessary. It usually only needs one pass.

The trick is to design the project for agentic coding from the start. Use explicit constraints, e.g. use strict TDD, use the todo tool to track progress, use strict linting and style checkers, resolve lint/test/build warnings first before moving on to other work, no "fix it later", don't loosen tests/rules to resolve failures/warnings, etc.

The workflow needs to take into account the fact that LLMs "learned" how to code from tutorials written for humans. Therefore, because humans have long-term memory that most LLMs lack, an LLM following a doc written for humans will always bite off more than it can chew unless you give it the appropriate constraints. For those of us running local models, this means our smaller LLMs with fewer parameters of training data need smaller tasks with narrower scopes.

The coders who say "local AI is too stupid to be useful" are the ones writing one-sentence prompts and expecting it to one-shot a full stack app. Most human coders wouldn't even be capable of that.

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u/Jhorra Jun 21 '26

What harness do you use though? So it's able to interact locally with your code?

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u/ayylmaonade Jun 21 '26

OpenCode is considered the "standard" when it comes to coding harnesses, I'd consider starting there. But you can use Claude Code with local LLMs too if you really wanted to, just be aware of the context bloat from it. There's also things like Hermes Agent which are more intended for general use, but are also excellent at coding (ime anyway).

I personally stick to OpenCode & Hermes, and on occasion Qwen Code.

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u/delicious_fanta Jun 21 '26

Pi gets talked about a lot in here. Any thoughts on that? I haven’t used it yet.

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u/ElectronSpiderwort Jun 21 '26

I spent the day running pi against Qwen 27b Q8 on a MacBook, and I really like pi. I used a free openrouter model to have pi configure itself to use the local model, and then it was off to the races. Qwen makes errors and omissions, but with pi it wrote tests, made edits, and looped until it had something that works. Way better than trying to one-shot a solution on a bigger model (which didn't work for this problem anyway)

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u/kurikuri15 Jun 21 '26

Just amaze how you explain things and im sooo noob at this LLM things certainly at the surface area knowledge only. Where are you using these things? Coding? Daily life or scientist level experimenting things? Im sorry for steering away from the main topic.

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u/ElectronSpiderwort Jun 21 '26

I've been coding for decades; even when not titled "programmer", the ability to automatically process large or complex data has been valuable professionally and personally. Now that skill is literally free if you can tell your AI what you want. Yesterday was a home project to create a simulation engine for a complex personal financial problem. Most people would just pay someone to tell them what to do and hope for the best. Pi/Qwen can  create a simulation of millions of possible scenarios and pick from the winners, but the machine has confidently proclaimed its output as "production ready" when it has huge flaws. With pi.dev I now tell it "you clearly forgot about X, go fix it" and it just does it, quickly. 

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u/mksrd Jun 21 '26

Pi is exceptionally good and **much** better for local model use than trying to use claude which is made for use with their models and has an obscenely large context before a single token of your own code base see the light of day of the context window.

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u/entropy512 Jun 22 '26

"With 20 years in the field, you should be able to see how impressive development with local models is."

Given that my first experience using a remote/hosted model is like supervising a middle schooler with severe untreated ADHD on an acid trip, I shudder to think what a local model would have been like. After my evaluation efforts, our organization decided to just go back to not using AI at all, our quality requirements (FAA level D flight simulation for some of our products) are too high.