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Wednesday 13 May 2026 09:20:04 GMT
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The days of tokenmaxxing might be over, y’all Instead of using AI to build the kind of code we talk about in this video, token-heavy agentic loops are still the most broadly talked about area right now. An article came out a few months ago about token minimization, but it seemed to be more about cutting employees off from their ability to use AI at all. Plus, let’s look at a very relevant case study indicating that token minimization isn’t really happening yet: Anthropic’s recent S1 filing. About 80% of Anthropic’s revenue is billed per token rather than as flat monthly subscriptions, which includes developers building on the API and companies whose employees use Claude’s own apps, like Claude Code, on usage-based plans. Revenue thus grows with how long and how often agents run. The S1 filing shows that the top 5% of Claude Enterprise users who also use Claude Code spend about 20x more than those who don’t, net revenue retention is about 900%, and quarterly revenue went from $376M to $11.6B in six quarters. And yes, many people have been doing this for a while - certainly software engineers who are used to building software & automations. I made coding guides on how to fine-tune open models for this exact thing over 3 years ago! But this hasn’t become *mainstream* yet - I advise companies, and I see it in tech-forward startups and among the most technically advanced people in larger corporations. Again, token-heavy agentic loops are still the most broadly talked about area right now. I think this knowledge of building actual software & systems that selectively use AI will become much more mainstream — after years of encouraging people to do it! Also, if you're new here, hi! I'm Harper. I've spent a decade building AI as a Stanford computer scientist and coding AI systems at Meta & at a startup acquired by NVIDIA. I've always loved to teach, and now I get to create educational videos to share the skills, understanding, and intuition I've worked years to develop with you. For my (free) 10 Days of AI Basics series + more, DM me GUIDE and I'll send you my video walkthrough guide.
The days of tokenmaxxing might be over, y’all Instead of using AI to build the kind of code we talk about in this video, token-heavy agentic loops are still the most broadly talked about area right now. An article came out a few months ago about token minimization, but it seemed to be more about cutting employees off from their ability to use AI at all. Plus, let’s look at a very relevant case study indicating that token minimization isn’t really happening yet: Anthropic’s recent S1 filing. About 80% of Anthropic’s revenue is billed per token rather than as flat monthly subscriptions, which includes developers building on the API and companies whose employees use Claude’s own apps, like Claude Code, on usage-based plans. Revenue thus grows with how long and how often agents run. The S1 filing shows that the top 5% of Claude Enterprise users who also use Claude Code spend about 20x more than those who don’t, net revenue retention is about 900%, and quarterly revenue went from $376M to $11.6B in six quarters. And yes, many people have been doing this for a while - certainly software engineers who are used to building software & automations. I made coding guides on how to fine-tune open models for this exact thing over 3 years ago! But this hasn’t become *mainstream* yet - I advise companies, and I see it in tech-forward startups and among the most technically advanced people in larger corporations. Again, token-heavy agentic loops are still the most broadly talked about area right now. I think this knowledge of building actual software & systems that selectively use AI will become much more mainstream — after years of encouraging people to do it! Also, if you're new here, hi! I'm Harper. I've spent a decade building AI as a Stanford computer scientist and coding AI systems at Meta & at a startup acquired by NVIDIA. I've always loved to teach, and now I get to create educational videos to share the skills, understanding, and intuition I've worked years to develop with you. For my (free) 10 Days of AI Basics series + more, DM me GUIDE and I'll send you my video walkthrough guide.

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