Cognition (Devin AI) to Acquire Windsurf

I think the amount of turmoil around these deals is giving more weight to the possibility that we’re in a massive bubble thats quite divorced from any kind of fundamentals. Sooner or later the bubbles gonna burst.

> divorced from any kind of fundamentals

Anthropic ARR went $1B -> $4B in the first half of this year. They're getting my $200 a month and it's easily the best money I spend. There's definitely something there.

I’ve always dwelled over $5 a month subscriptions for iPhone apps due to subscription fatigue. I find myself signing up for $200 AI subscriptions without a moments hesitation.

I hope both of you know that you're in the extreme minority, right?

A very productive minority.

Have we seen any examples of any of these companies turning a profit yet even at $200+/mo? My understanding is that most, if not all, are still deeply in the red. Please feel free to correct me (not sarcastic - being genuine).

If that is the case at some point the music is going to stop and they will either perish or they will have to crank up their subscription costs.

I am absolutely benefitting from them subsidizing my usage to give me Claude Code at $200/month. However, even if they 10x the price its still going to be worth it for me personally.

I totally get that but that’s not really what I asked/am driving at. Though I certainly question how many people are willing to spend $2k/mo on this. I think it’s pretty hard for most folks to justify basically a mortgage for an AI tool.

My napkin math is that I can now accomplish 10x more in a day than I could even one year ago, which means I don't need to hire nearly as many engineers, and I still come out ahead.

I use claude code exclusively for the initial version of all new features, then I review and iterate. With the Max plan I can have many of these loops going concurrently in git worktrees. I even built a little script to make the workflow better: http://github.com/jarredkenny/cf