If you came to my recent CLAUDE HAVE MERCY event you’ll have heard there that what firms (and individuals) are currently paying for AI just isn’t reflective of the true cost… and that is about to change, as reported in Wired.
The route to profit for these huge AI firms is dodgy at best. They have had billions upon billions of investment sunk into them and – despite massive theft of people’s art, books, musings and posts – are still miles away from seeing returns.
But this is part of the classic business model. Remember when Uber first started and getting one was so cheap? That was deliberate: dazzle the market, majorly undercut the competition – to the extent that they pretty much die – then jack up prices (but not wages).
So… enjoy that cheap monthly sub to Claude while you can. And if you’re a firm – or a school, or university, or even a government… be alert: huge extra cost spikes are coming, and could be unpredictable because of differing energy costs.
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