Don’t get too used to ‘subsidized’ chatbot costs

The AI industry will likely follow the ‘growth at all costs’ model used by Uber and others, and then hike up prices.

[Photo: Andriy Onufriyenko/Getty Images]

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The cost of AI will surely rise, along with our dependence on it

Developing AI models and serving AI apps is a notoriously expensive undertaking. AI labs use massive amounts of computing power, training data, and high-priced talent to create and serve AI models, and the costs are not nearly covered by the chatbot subscription and API fees they bring in. Neither OpenAI nor Anthropic, for example, are profitable, and won’t be for some time. The difference, for now, is made up by investment money, much of it from venture capital firms. But that won’t last, of course. As AI companies mature, they’ll be expected to make returns on........

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