Earlier quoted context omitted.
But aren't we only worth something like $300/year each to Meta in terms of ads? I remember someone arguing something like that when the TikTok ban was being passed into law... essentially the argument was that TikTok was "dumping" engagement at far below market value (at something like $60/year) to damage American companies. That was something the argument I remember anyway.
If that’s the case, we have an even bigger problem on our hands. How will these companies ever be profitable? If we’re already paying $20/mo and they’re operating at a loss, what’s the next move (assuming we’re only worth an extra $300/yr with ads?) The math doesn’t add up, unless we stop training new models and degrade the ones currently in production, or have some compute breakthrough that makes hardware + operatin…
We're very clearly heading toward a future where there will be a heavily ad-supported free tier, a cheaper (~$20/month) consumer tier with no ads or very few ads, and a business tier ($200-$1000/month) that can actually access state of the art models.
Like Spotify, the free tier will operate at a loss and act as a marketing funnel to the consumer tier, the consumer tier will operate at a narrow profit, and the business tier for the best models will have wide profit margins.