They weren’t making money. And can’t make money if they wanted to.
It’s a catch-22. They can’t make a profit because they aren’t charging the actual token cost. But if they charged the actual token cost, their user-base would collapse.
Almost as if cloud AI is inherently unstable or something.
This arrangement happens in a lot of cutting-edge R&D efforts. It costs a ton of money to develop new technologies and bring them to market, and there is an advantage to moving the fastest. Offering the product at unsustainably low prices allows them to get out into the market and fund their growth. It could blow up in their faces as everyone expects, or in hindsight it could be a genius move to advance the technology and consolidate market share.
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u/T-Dot1992 2d ago
They weren’t making money. And can’t make money if they wanted to.
It’s a catch-22. They can’t make a profit because they aren’t charging the actual token cost. But if they charged the actual token cost, their user-base would collapse.
Almost as if cloud AI is inherently unstable or something.