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Artificial intelligence is getting expensive — and companies are starting to rethink their embrace of the disruptive technology.
Playing by a well-worn Silicon Valley playbook, AI companies charged rock-bottom prices to hook customers after ChatGPT burst onto the scene.
Kevin Simback of startup 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,” Simback warned and an era where the big AI companies actually need to make money has begun — with leaders OpenAI and Anthropic looking to go public and attract main street investors later this year.
