usage-based-pricing

2 posts

gitlab

Introducing GitLab Credits (opens in new tab)

GitLab is transitioning from seat-based pricing to a usage-based model with the introduction of GitLab Credits, a virtual currency designed for the GitLab Duo Agent Platform. This shift addresses the limitations of traditional licensing, which often creates "AI haves and have-nots" by making access too expensive for light or occasional users. By pooling resources across an entire organization, GitLab aims to provide equitable access to agentic AI for every developer while ensuring costs align with actual consumption. ## The Shift from Seat-Based to Usage-Based AI * Traditional seat-based models are poorly suited for agentic AI, which can be triggered by background SDLC events rather than just direct user interaction. * The credit model allows every member of a Premium or Ultimate organization to use AI capabilities without requiring an individual "AI seat." * Usage-based pricing automatically offsets the costs of power users against lighter users, lowering the total cost of ownership for the organization. ## Mechanics of GitLab Credits * Credits function as a pooled resource consumed by both synchronous interactions (like Agentic Chat in the IDE) and asynchronous background tasks. * Supported capabilities include foundational agents (Security, Planner, Data Analyst) and specific workflows such as Code Review and CI/CD pipeline fixing. * The system integrates with external models like Anthropic Claude Code and OpenAI Codex, as well as custom agents published in the GitLab AI Catalog. * Each credit has an on-demand list price of $1, with volume discounts available for enterprise customers who sign up for annual commitments. ## Governance and Usage Controls * Administrators can monitor consumption through two dedicated dashboards: a financial oversight portal for billing managers and an operational monitoring view for administrators. * Granular controls allow organizations to enable or disable Duo Agent Platform access for specific teams or projects to prevent unexpected credit depletion. * Proactive email alerts are triggered when consumption reaches 50%, 80%, and 100% of committed monthly credits. * A sizing calculator is available to help organizations estimate their monthly credit requirements based on patterns observed during the platform's beta period. ## Transitioning and Promotional Access * Existing GitLab Duo Pro and Duo Enterprise customers can roll over their current seat investments into GitLab Credits with volume-based discounts. * As part of a limited-time promotion, GitLab is providing $12 in monthly credits per user for Premium subscribers and $24 per user for Ultimate subscribers. * Self-managed and GitLab Dedicated customers will gain access to these credit-based features starting with the 18.8 and 18.9 releases. For organizations looking to scale AI across the software development lifecycle, the credit-based model offers a more flexible and cost-effective path than rigid seat licenses. Current Premium and Ultimate subscribers should leverage their monthly promotional credits to baseline their usage before committing to larger annual credit bundles.

stripe

Create new monetization opportunities with Stripe Billing’s recent upgrades (opens in new tab)

Stripe Billing is expanding into a more flexible platform for complex revenue models, supporting multiple payment processors, adaptable invoicing, hybrid pricing, and AI-specific billing. The updates aim to help businesses manage recurring revenue across diverse payment infrastructure while responding quickly to changing customer needs and AI costs. Stripe says Billing now serves more than 300,000 users and has been recognized by Gartner and Forrester. ## Expanded Support for Off-Stripe Payments - Billing can now track successful, failed, refunded, and canceled payments processed outside Stripe. - Businesses can attach off-Stripe payment records to invoices and report failed transactions. - Scheduled retries and dunning workflows are available for those transactions. - Uploaded payment method names and logos can appear in the customer portal. - Paid support for unified reporting and revenue recognition covers both Stripe and non-Stripe volume. - Future additions include Stripe Sigma reporting, dispute recording, and customer-portal subscription updates for other processors. ## More Flexible Billing and Invoicing - Businesses can prebill future subscription periods at any time, including: - Specific subscription items - Arbitrary date ranges - Partial periods - Multiple months in advance - Invoicing improvements include: - Local-currency payments in more than 150 countries through Adaptive Pricing - Installment payments via Klarna, Affirm, and Afterpay/Clearpay - Partial invoice payments - Unapplying payments to correct reconciliation errors - These capabilities help companies offer incentives, improve cash-flow predictability, and reduce payment friction. ## Hybrid Pricing for AI Products - New pricing plans combine: - Usage-based rates - Dimensional pricing - Recurring fees - Credits - Companies can issue recurring credits, define how credits are consumed, and consolidate charges into one bill. - Real-time usage tracking and Usage Analytics API dashboards show consumption and remaining balances. - Automatic credit top-ups can prevent service interruptions. - Lovable reportedly built and launched its complete system with two engineers in under two weeks. ## LLM Proxy for Protecting Margins - Stripe’s LLM proxy, currently in private preview, tracks token usage from API requests and applies predefined pricing automatically. - Stripe calculates usage, adds the company’s markup, and produces unified invoices. - This allows businesses to update underlying AI costs without manually redesigning their billing systems. - Integrations with OpenRouter, Cloudflare, Vercel, and Helicone support routing through third-party LLM proxies while recording usage events. Stripe’s latest Billing features are designed for companies whose pricing, payment infrastructure, and cost structures are constantly changing. Businesses with multi-processor setups, flexible invoicing needs, or AI-driven usage models can use these tools to centralize billing while adapting prices and protecting margins more quickly.