We are nearing the end of the “first ones free” stage. AI companies have been undercharging since they started. Tokens are costing them nearly 10x what they’re selling them for, on the backs of VC funding. Those investors want their money. A lot of cross company deals as well where investment is merely trading for services. Like Microsoft’s investment in OpenAI. That was mostly a trade for computer resources that made the balance sheet look better. It’s going to get ugly.
2 Comments
yakko@feddit.uk · 2 pts · 31d
Ah yes," tech debt"
WasabiWabbit@lemmy.ca · 2 pts · 27d
We are nearing the end of the “first ones free” stage. AI companies have been undercharging since they started. Tokens are costing them nearly 10x what they’re selling them for, on the backs of VC funding. Those investors want their money. A lot of cross company deals as well where investment is merely trading for services. Like Microsoft’s investment in OpenAI. That was mostly a trade for computer resources that made the balance sheet look better. It’s going to get ugly.