AI chatbots are notorious for hallucinating, but what about the companies behind those Large Language Models like Anthropic? One Korean software developer could add to that, given he just faced a soul-crushing experience where he was billed a ludicrous $16.6 million for using its Claude API.
The horrifying part about this ordeal was that it wasn’t a sophisticated phishing attempt or an elaborate scam; the source was a verified Anthropic billing domain. What’s even more perplexing is that the developer’s dashboard stated that there were zero incurred bills, and yet, the developer was charged a mammoth sum.
The billing history shows that Anthropic actually made two attempts, with the first one being $1.6 million
Now, suppose the same incident had happened to a company’s business account with a significantly bigger credit limit. Sure, an immediate call to a bank and the filing of a report would have nullified the situation, but it sure doesn’t subside the stress experienced by the person who witnessed the email notifications.
On Threads, a software developer with the handle “remy_notes” shows evidence that he was wrongfully charged by Anthropic. However, upon further investigation, it’s revealed that the AI firm actually made two billing attempts: one a $1.6 million charge, followed by a ten-fold one. The software developer’s bank confirmed that Anthropic sent a real, automated merchant request.
On Reddit, some users have pieced together why this glitch could have happened. In API development, users who set up AI agents can often get stuck in an infinite loop, resulting in massive, heavy server costs. Then again, to be billed $16.6 million in a single cycle would require thousands of tokens running simultaneously, which, realistically, would be impossible for a single developer.
This incident doesn’t appear to be an isolated one, as other Reddit users report that Anthropic’s strange billing patterns have resulted in repeated small $20 charges multiple times a day. If anything, this incident highlights a major safety issue for those relying on the Claude API, with nothing less than Anthropic’s immediate attention required.
News Source: Threads
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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