Sarah Sachs: preference

Transcript context

…So they are, um, the credits and payment structures associated with the token usage. The reason that we had to make it not just throughput of tokens is that it’s not always priced that way. Like our, um, fine tuned and open source models are served on GPUs, right? Web search is priced differently. You know, if we were to host sandboxes, those are priced differently. So we had to think of an abstraction above tokens. And it’s also not just tokens, it’s the token model. Um, and serving tier trade off, right? Mm-hmm. Because we can have priority tier processing, we can have asynchronous processing. The cash rate could be different, um, depending on who uses it when, right? And so we wanted to, um, from the get go commit to making sure that customers were getting the fair deal. Not necessarily that we were making a ton of money off of it, but that customers were paying for what was reasonable. That’s the fundamental of where we started. And also, you know, we’re selling enterprise sa, so if we sell credit packs and you get discounts if you’re an enterprise and you buy a certain amount of credit packs and things like that. So it also just helped the sales motion, um, work a little bit easier. So that’s the answer on the abstraction of credits to dollars. Now was the question how we decide how to price it or? Alsesio: Yeah, like, I mean, I think there’s, all tokens are not made equal, but yeah, we obviously get charged mostly equal. Like you can ask, uh, codex to create you a dumb tool for like, I created one for our StarCraft two land for people to like find a game. Uh, but then people create it to build features and like billion dollar companies. But the token price is the same. Yeah. Alsesio: Like for you, I can ask this to update my favorite recipes doc. I’ll do it, but I could ask it to like respond to an email from an investor and like the value is like very different, you know, and you could charge more, but you’re not necessarily doing it. So I’m curious if there was any discussion. ke respond to an email from an investor and like the value is like very different, you know, and you could charge more, but you’re not necessarily doing it. So I’m curious if there was any discussion. I think, I think that, um, that’s not where the market is right now. Um, number one, the second reason that we’re not doing that, as it ended up being kind of complicated to figure out what was complicated or not. So we at first we were like, let’s just charge on agent runs. And you know what, you went through all the different versions that ultimately just brought you back to a lot of complexity that mapped directly to token throughput. And so it, it’s also just simpler. Um, it’s quite difficult, um, to build those pricing systems. And, um, I actually think that one of the biggest reasons we want had usage based pricing for this capability is. We’ve had our core agent for a while with a model picker and there were certain models, um, or certain functionality that we had margins to maintain. And if we wanted to ship this functionality, uh, you, we couldn’t afford it, it would bankrupt the company. If we let, for instance, like autofill or the database autofill feature, we’ll soon be agentic That will be associated with usage based pricing. Because if every single autofill action was an agent running on Opus on every single database sell, it would be billions of dollars, right? And so we had to find a way for the customers that wanted to do more and wanted to give us their money and pay more to find the outlet for them to do it, that we didn’t have to apply to the lower end of the curve. And also, not all knowledge work is equal. Like there’s different points. A lot of the agent workflows here really saturate model capabilities. Like you don’t need a complicated model for it. And so charging based on token usage, um. It, we couldn’t just decide for you that you wanted your email client to be dumb or not, right? Like, we want you to decide if you want to have Opus Auto Triage all of your emails, we will actually give you nudges in the product to rethink if that’s the right choice. Right. Um, because also not every user, um, Alsesio: understand. You’d be surprised in user interviews. People would be like, oh, I didn’t know that. So now we actually have a little hover that tells you like if it’s expensive or not. Yeah. I mean, it’s also slower. So the thing that’s interesting is like people don’t care about speed and custom agents. And so the incentive of like, uh, haiku being faster, people don’t care when it’s asynchronous. Um, and so we want to only provide the service of extra, extra benefit that people want. And the best way to do that is to incentivize them because it’s their own own money. Alsesio: It must be confusing for people that are not familiar. It’s like, why is there no 5.3. You know, you open this thing and it’s like, is there something missing? Manual. It’s not their fault. Not their fault. Yeah. That’s just the world we live in now. Alsesio: Yeah. It just radical jump point too, it’s like Cloud had that.…

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