It’s a subsidized price; conditional to using their tooling. Don’t want to use their tooling? Pay the API rates. The API is sitting right there, ready to use for a broader range of purposes.
It’s only unreasonable if you think the customer has a right to have their cake and eat it too.
> It’s a subsidized price; conditional to using their tooling.
Yes, because you are giving them your data. So you're not actually paying for usage. What they should do instead is be upfront about why this is subsidized and/or not subsidize it in the first place.
I think the permaban without notification on first violation (that most violators likely weren't even aware was a violation) is unreasonable. This should almost certainly be illegal if it is not already under the DSA or similar, particularly for a monopolist of Google's scale.
What about this ban is anticompetitive? The only think I can think of is accusing them of dumping product (as opposed to price discrimination), in which case the remedy is going to be to making them charge the API price for everything.
The issue with them being a monopolist is less about competition and more about the fact them penalizing you on one of their products can result in them deleting you from the Internet. You can lose decades of email history, the ability to publish apps on over half of the mobile devices on the globe, etc.
In Europe the Digital Services Act (DSA) is beginning to set expectations, particularly for large platforms about not just clear documentation of their terms, but also a meaningful human appeal process with transparency and communication requirements for actions taken.
The DSA is more focused on social networks, but if you were to apply the concepts of the DSA to this story, Google would have violated it several times over.
Tradition warrants a negotiation phase when one party wishes to change the terms of an agreement, or becomes cognizant that the counterparty may wish to do the same.
The tech industry has gorged on non-participation in this facet of contract law, instead resorting to all or nothing clickwrap, which is, barring existential or egregious circumstances, unwarranted, and in my opinion, is fundamentally unreasonable, and should be an invalid exercise of contract law. Especially given the size of one of the party's in comparison to the other.
> Tradition warrants a negotiation phase when one party wishes to change the terms of an agreement, or becomes cognizant that the counterparty may wish to do the same.
They didn't change the agreement. One party violated it, and the other party withdrew as a result.
This is so vanilla. But people will moan because they want subsidized tokens.
The punishment, of being kicked out of your Google account for a zero-tolerance first offense, is completely unreasonable, is incredibly extreme Lawful Evil alignment.
The damage to individuals that Google is willing to just hand out here, to customers they have had for decades, who have their lives built around Google products, is absurd. This is criminally bad behavior and whatever the terms of service say, this is an affront to the dignity of man. This is evil. And beyond any conceivable reason.
A flat rate is always a mixture of low usage people subsidizing high usage people. It's disgusting that these companies want to have the advantages of subs, but then straight up ban any high usage people. Basically, there is no flatrate.
What a wonderful way to stop people from using your LLM.
All these AI companies trying to get everyone to be locked into their toolchains is just hilariously short sighted. Particularly for dev tools. It's the sure path to get devs to hate your product.
And for what? The devs are already paying a pretty penny to use your LLM. Why do you also need to force them to using your toolkit?
There is a reality that when they control the client it can be significantly cheaper for them to run: the Claude code creator has mentioned that the client was carefully designed to maximise prompt caching. If you use a different client, your usage patterns can be different and it may cost them significantly more to serve you.
This isn't a sudden change, either: they were always up-front that subscriptions are for their own clients/apps, and API is for external clients. They don't document the internal client API/auth (people extracted it).
I think a more valid complaint might be "The API costs too much" if you prefer alternative clients. But all providers are quite short on compute at the moment from what I hear, and they're likely prioritising what they subsidise.
I imagine its a case of the providers not wanting to admit its costing them a fortune because suddenly all these low-medium usage accounts are now their highest use ones.
Not saying it's right. But it's also not exactly a secret that they are all taking VERY heavy losses even with pricey subscriptions.
Businesses do not have an entitlement to profit. Suspending customers for using a fairly expensive subscription plan -- especially forfeiting an annual prepayment for a day or two of coloring outside the lines -- sure does make Google appear entitled to profit without ever risking its own pricing model.
> Suspending customers for using a fairly expensive subscription plan -- especially forfeiting an annual prepayment for a day or two of coloring outside the lines
they're being suspended for using a private api outside of the app for which the api was intended. If you make a clone of the hbo app, so that you can watch hbo shows without ads by logging in with your discounted ads-included membership, your account will also be suspended.
The facts are straightforward, even without analogies. But since we're using them...
You are at the grocery store, checking out. The total comes to $250. You pay, but then remember you had a coupon. You present it to the cashier, who calls the manager over. The manager informed you that you've attempted to use an expired coupon, which is a violation of Paragraph 53 subsection d of their Terms of Service. They keep your groceries and your $250, and they ban you from the store.
Google is acting here like it was entitled to a profitable transaction, and is even entitled to punish anyone who tries to make it a losing transaction. But they're not the police. No crime was committed.
Regular businesses win some and lose some. A store buys widgets for $10 and hopes to sell them for $20, but sometimes they miscalculate and have to unload them for $5. Overall they hope their winners exceed their losers. That's business.
my point wasn't an analogy. the facts are that it is a private api being used with a subscription service. neither hbo nor google are required to do business with people that abuse the api.
We are in violent agreement about that point. Where we seem to disagree is that I don't think they're entitled to also keep the customer's annual subscription payment when they've decided they want out of the contract.
Equally, customers are not entitled to make set the terms, or pricing decisions for businesses. They can always move their custom elsewhere if they disagree with ToS or pricing.
It's interesting, I doubt it'll ever be successful.
Look, the reason a lot of content makes it's way to Youtube, tiktok, and twitter, etc is because the creators can earn money from the platform. On youtube and tiktok, you can send gifts to your favorite creator. That incentivizes creators to create content.
loops will never have that feature. It's really hard to legally distribute money like that. But further, the decentralized nature of it means that you'll never know if your funds ends up in your creator's account or the instant account.
Without any sort of path to make money, the only content on the platform will be works of passion. Maybe that's a good thing, but it means these people will ultimately burn out.
But on the plus side, it means you probably won't end up with an endless stream of AI slop.
Instagram pays hardly anything. I don't know anyone doing it for that reason. It's more advertising for their other services. Like onlyfans, selling physical stuff, lectures, events etc.
And of course the people who do it for fun, usually the best content. It doesn't matter they'll eventually stop. There's always new ones.
I'm not sure about tiktok, but I doubt they pay much more than insta.
Yeah, that's the biggest issue. And it all originally stemed from phone carriers wanting to lock customers into their services.
We need some pro-consumer regulations on hardware which mandate open platforms. Fat chance of that happening, though, as the likes of both the EU and US want these locked down systems so they put in mandatory backdoors.
I agree with this assessment. And I think that the way it's setup in the constitution is correct, that congress needs to ultimately create the tariffs rather than the president. Creating tariffs unilaterally should almost never happen.
There's roughly 4 to 5 generations alive at any point and the middle generation is going to be considered both old and young by the generations surrounding it.
You're right. 8 year olds would call you ancient and 80 year olds would call you a baby. Middle age is relative and unless you're over 45 you don't admit to it, and then hold on to it for too long.
Tell me, when was the last time you visited your shoe cobbler? How about your travel agent? Have you chatted with your phone operator recently?
The lump labour fallacy says it's a fallacy that automation reduces the net amount of human labor, importantly, across all industries. It does not say that automation won't eliminate or reduce jobs in specific industries.
It's an argument that jobs lost to automation aren't a big deal because there's always work somewhere else but not necessarily in the job that was automated away.
Jobs are replaced when new technology is able to produce an equivalent or better product that meets the demand, cheaper, faster, more reliably, etc. There is no evidence that the current generation of "AI" tools can do that for software.
There is a whole lot of marketing propping up the valuations of "AI" companies, a large influx of new users pumping out supremely shoddy software, and a split in a minority of users who either report a boost in productivity or little to no practical benefits from using these tools. The result of all this momentum is arguably net negative for the industry and the world.
This is in no way comparable to changes in the footwear, travel, and telecom industries.
Current generation "AI" has already largely solved cheaper, faster, and more reliable. But it hasn't figured out how to curb demand. So far, the more software we build, the more people want even more software. Much like is told in the lump of labor fallacy, it appears that there is no end to finding productive uses for software. And certainly that has been the "common wisdom" for at least the last couple of decades; that whole "software is eating the world" thing.
What changed in the last month that has you thinking that a demand wall is a real possibility?
I agree the pie can grow, but I don’t know that the profession survives in its current form. Whether the next form is personally profitable for those of us who’ve sunk a decade+ into the SWE skillset remains to be seen.
I selfishly hope it is, but imo it’s simply to early to tell.
This implication completely depends on the elasticity (or lack thereof) of demand for software. When marginal profit from additional output exceeds labor cost savings, firms expand rather than shrink.
We lost the pneumatic tube [1] maintenance crew. Secretarial work nearly went away. A huge number of bookkeepers in the banking industry lost their jobs. The job a typist was eliminated/merged into everyone else's job. The job of a "computer" (someone that does computations) was eliminated.
What we ended up with was primarily a bunch of customer service, marketing, and sales workers.
There was never a "office worker" job. But there were a lot of jobs under the umbrella of "office work" that were fundamentally changed and, crucially, your experience in those fields didn't necessarily translate over to the new jobs created.
Right, and my point is that specific jobs, like the job of a dev, were eliminate or significantly curtailed.
New jobs may be waiting for us on the other side of this, but my job, the job of a dev, is specifically under threat with no guarantee that the experience I gained as a dev will translate into a new market.
I think as a dev if you're just gluing API's together or something akin to that, similar to the office jobs that got replaced, you might be in trouble, but tbh we should have automated that stuff before we got AI. It's kind of a shame it may be automated by something not deterministic tho.
But like, if we're talking about all dev jobs being replaced then we're also talking about most if not all knowledge work being automated, which would probably result in a fundamental restructuring of society. I don't see that happening anytime soon, and if it does happen it's probably impossible to predict or prepare for anyways. Besides maybe storing rations and purchasing property in the wilderness just in case.
Just because something is in the ToS doesn't mean it's reasonable.
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