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Spending Too Much Money on a Coding Agent

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On making use of large thinking models.

For a year, I’d been coding almost every day with Cursor and Claude Sonnet. Anthropic’s 3.5 and 3.7 Sonnet each rightly earned their dominant place on the programming model charts: they were the least-bad coding models yet.

In the earliest days of LLMs, there was tremendous interest in ever-larger model releases. Hype around bigger, slower models has since waned, as Claude 3 Opus, GPT 4.5, and OpenAI o1 – all large and technically impressive model releases, each useful for some niche purposes – were ultimately too expensive and slow to be worth the squeeze for day-to-day coding.

But then, this spring, something interesting happened.

Full speed ahead

Last month, my co-founder Jenn and I were rapidly sprinting to hit a self-imposed deadline (demoing our latest experiment at Web Summit Vancouver). Luckily, Claude Sonnet is truly helpful when coding – especially in TypeScript. Still, under time pressure, I started to get annoyed with its LLM-isms: overcomplicating changes, proposing unnecessary dependencies, and just literally changing failing tests into skipped tests to resolve “the tests are failing.” Like, what the crap?

Frustrated, I tried switching from Claude Sonnet to the new o3 thinking model. I knew o3 was painfully slow, so I took the time to write out exactly what I knew, and what I wanted the solution to look like, and gave it some time to work. To my surprise, the response was… great?

The more I tried it, the more I found o3’s improved ability to use tools, assess progress, and self-correct led to results that were actually worth the wait. I found myself expanding what terminal commands I allowed the agent to run, helping it get further than ever before. When I completed a hard “o3-grade” task and moved on to something simpler, I was increasingly tempted to leave it on o3 instead of switching back. Sonnet was faster in theory. But o3 was faster in practice.

The only problem was, it was costing a fortune.

Depending on the task, my o3 conversations were averaging roughly $5 of Cursor requests each, or about $50 a day. That… is a lot of money.

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