Per the article is all underpriced… run the logic.. assume when the funds run out that prices across the board go up 5x, 10x, more. Assess where u think it’d all be at.
What do u think downward affect on the market will be?
That's possible, but how would we know what the cost to provide the service is from any of the companies, which will anyways vary from company to company since they are using different models and hardware (e.g. OpenAI/Microsoft NVIDIA, Google TPUs, Anthropic/Amazon Trainium).
We also don't know how much the average chat subscriber is using the service. A low usage subscriber may be profitable at $20/mo, but a high usage one unprofitable.
Chat subscription prices seem to have been steady at $20/mo for a while, but cost of providing the service is falling very fast. In recent Dwarkesh interview, Satya Nadella says costs are falling 5/10/40x year over year, or evern quarter over quarter.
Here, at 1:10:56