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> More people subscribe to/play with a $20/m service than own/admin state-of-the-art machines?! Say it ain't so /s The problem is, $20/m isn't going to be prof
by thewebguyd 1y ago
> More people subscribe to/play with a $20/m service than own/admin state-of-the-art machines?! Say it ain't so /s
The problem is, $20/m isn't going to be profitable without better hardware, or more optimized models. Even the $200/month plan isn't making money for OpenAI. These companies are still in the "sell at a loss to capture marketshare" stage.
We don't even know if being an "AI Company" is viable in the first place - just developing models and selling access. Models will become a commodity, and if hardware costs ever come down, open models will win.
What happens when OpenAI, Anthropic, etc. can't be profitable without charging a price that consumers won't/can't afford to pay?
- bravetraveler 1y agoPop :) For some, at least. Barons tend to leave remnants