They mention rate of adoption, compared to the internet. Consider the barriers to entry. Before we all got sick of receiving AOL CDs, the prospect of 'going online' was incredibly expensive and sometimes laborious.
More people subscribe to/play with a $20/m service than own/admin state-of-the-art machines?! Say it ain't so /s
> 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?
More people subscribe to/play with a $20/m service than own/admin state-of-the-art machines?! Say it ain't so /s