AI developer tools are heavily subsidised , with labs and platforms often providing power users 15 to 30 times more value in underlying compute and token costs than they charge in flat monthly subscriptions. For heavy users running intensive agentic workflows, a standard $200/month subscription can easily rack up $3,000 to $5,500+ in API-equivalent compute costs
Understandably a lot of people are nervous about where this is all going and it’s a question we’re often asked. Predicting the future is notoriously hard however this is how I see a future that balances humans with cost:
Short to mid term I see models like Fable being used for detailed planning and architecture then open models run by the company doing the development to implement that plan in code.
Ultimately it feels that the AI providers are building things way smarter and way more expensive than most of us need - a bit like hiring a PhD in rocket science to build your webapp. Amazing to watch but just not fit for purpose.
If I had to put money on it I would see the balance being open models run locally for dev teams with predictable costs and fewer security issues that provide human developers with the tools to be fast and efficient rather than AGI bots doing it all at huge & unpredictable cost and not inconsiderable risk.
For more on why chasing the biggest model rarely translates into better outcomes, see the challenge of AI adoption.
