Why Cursor's flat-fee pricing could lead to its downfall

by sytseon 4/4/2025, 1:19 PMwith 2 comments

by bigyabaion 4/4/2025, 1:20 PM

> Cline/OpenRouter’s monetization model is simple: Add a 5% markup on top of anything you pay your API provider.

If you read this and think "Oh, nice business!" then you are exactly the reason why DevOps is a specialized role that we don't assign to developers.

by al2o3cron 4/4/2025, 2:32 PM

Speaking of "incentive alignment", what's the incentive for providers using the "cost plus" billing model to reduce hallucinations / bogus outputs?

Seems like they're pushed in the same enshittified direction that search has been, where it's optimized to increase traffic rather than produce answers efficiently.