the goal with this is to generalize what happened with claude code & windsurf to the fatal flaw in the idea that “models getting cheaper” will bail out consumer ai margins
They were burning money to gain market share and now they’re jacking up the price? Shocking, I say, truly shocking.
Is what I would’ve said if I didn’t read the article, but it addresses that pretty well. The jist is VC went in with expectations of greatly decreasing costs, which is happening with older models, but nobody wants to use older models.
So, costs are actually going up, and the bubble will keep swelling, I guess.
Is what I would’ve said if I didn’t read the article, but it addresses that pretty well. The jist is VC went in with expectations of greatly decreasing costs, which is happening with older models, but nobody wants to use older models.
So, costs are actually going up, and the bubble will keep swelling, I guess.