alt Hacker NewsThat’s probably true only as long as subscription prices are kept artificially low. Once the $20 becomes $200 (or the fast-mode inference quotas for cheap subs become unusably small), the equation may change.
That’s probably true only as long as subscription prices are kept artificially low. Once the $20 becomes $200 (or the fast-mode inference quotas for cheap subs become unusably small), the equation may change.
This field is highly competitive. Much more than I expected it to. I thought the barrier to entry was so high, only big tech could seriously join the race, because of costs, or training data etc.
But there's fierce competition by new or small players (deepseek, Mistral etc), many even open source. And Icm convinced they'll keep the prices low.
A company like openai can only increase subscriptions x10 when they've locked in enough clients, have a monopoly or oligopoly, or their switching costs are multitudes of that.
So currently the irony seems to be that the larger the AI company, the more loss they're running at. Size seems to have a negative impact on business. But the smaller operators also prevent companies from raising prices to levels at which they make money.