Companies that invested heavily in AI are finding that rising operational costs are making the technology less cost-effective than initially expected, as AI firms transition away from subsidized pricing models.

South China Morning Post

AI is getting expensive – and companies are starting to rethink their embrace of the disruptive technology.
Playing by a well-worn Silicon Valley playbook, artificial intelligence companies charged rock-bottom prices to hook customers after ChatGPT burst onto the scene.
Kevin Simback of start-up incubator Delphi Labs calls it the era of “subsidised intelligence” – meaning investors were basically footing the bill so companies could offer AI on the cheap.
“But the tides are beginning to turn,”...