There’s been a lot of discussion lately about Anthropic and others turning the screws on their subscription plans, skyrocketing costs for enterprise customers. This is driving more and more folks to consider cheaper and non-proprietary models (which are getting more capable) for some of their tasks. This article goes into both of these trends.
Users will learn to be more efficient when the prices go up too. We love to casually chat with AI whether we're coding, researching, etc. But we'll tighten up these conversations, just like when you're talking to a lawyer you generally prep a little more before the meeting so you don't incur extra billing at $300/hour
> [AI customers] are using considerable time and resources to evaluate how expensive high-end models perform on certain tasks compared to cheaper alternatives.
That!
There are viable business models, at reasonable cost. But because there are now so many models available, and it is the way you use them that makes the difference, there is no moat for the big AI companies.
This is an industrial revolution. There are huge benefits available. They will not accrue to the "first movers"
There’s been a lot of discussion lately about Anthropic and others turning the screws on their subscription plans, skyrocketing costs for enterprise customers. This is driving more and more folks to consider cheaper and non-proprietary models (which are getting more capable) for some of their tasks. This article goes into both of these trends.
Users will learn to be more efficient when the prices go up too. We love to casually chat with AI whether we're coding, researching, etc. But we'll tighten up these conversations, just like when you're talking to a lawyer you generally prep a little more before the meeting so you don't incur extra billing at $300/hour
> [AI customers] are using considerable time and resources to evaluate how expensive high-end models perform on certain tasks compared to cheaper alternatives.
That!
There are viable business models, at reasonable cost. But because there are now so many models available, and it is the way you use them that makes the difference, there is no moat for the big AI companies.
This is an industrial revolution. There are huge benefits available. They will not accrue to the "first movers"
The AI free ride is over.
It's ain't over yet --- but the vendors are beginning to chart a course toward reality. But hang on to your wallet, you ain't seen nothing yet.
An issue with the big commercial AI vendors is that they try to encompass *everything* --- with a price to match.
Most businesses don't really care about *everything*. What they want instead is expertise in a specific, niche area.
I think the real market will be for a cheaper, more focused approach.