Slashdot: Don't Get Used To Cheap AI

Don't Get Used To Cheap AI
Published on 2026-03-13T21:00:00Z
AI services may not stay cheap for long, as companies like OpenAI and Anthropic are currently subsidizing usage to rapidly grow market share. As these companies move toward profitability and potential IPOs, Axios reports that investors will likely push them to increase prices and improve margins. An anonymous reader shares an excerpt from the report: Flashback: Silicon Valley has seen this movie before. The so-called "millennial lifestyle subsidy" meant VC money helped underwrite cheap Uber rides and DoorDash deliveries. Before that, Amazon built its base with low prices, free shipping and, for years, no sales tax in most states. Eventually, all of these companies had to charge enough to cover costs -- and make a profit. Follow the money: The current iteration of AI subsidies won't last forever. Both OpenAI and Anthropic are widely expected to go public. Public investors will demand earnings growth and expanding margins. Even as chips get more efficient, total spending keeps rising. Labs need more capacity, more upgrades and more supply to meet demand. The bottom line: The costs of AI will keep going down. But total spend from customers will need to keep going up if AI companies are going to become profitable and investors are ever going to get returns on their massive investments.

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