As a few commenters already pointed out, IME enterprises aren't paying for subscriptions. They're paying per token.
But also... is this shit AI written? I'm so tired of this.
AI subscriptions are a ticking time bomb for enterprise
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Re: AI subscriptions are a ticking time bomb for enterprise
#42Disclaimer: didn't finish tfa, so obviously AI even I could tell.
Perhaps OpenRouter can be used as a benchmark for commodity cost to serve AI. I keep hearing it's better value than Claude, which suggests to me that either Anthropic is especially inefficient for some reason, or they're turning a profit on inference. They could be losing money on training, but I suspect that's just part of the cost of staying a leading lab. If any single one goes under due to debt etc. then companies can just switch?
Re: AI subscriptions are a ticking time bomb for enterprise
#43Even if they are momentarily losing money it’s important to note the value add they are providing.
If you increase the price, the value is still astronomical in comparison.
Companies need to find a way to leverage local models in tandem with frontier models to offset the costs.
It’s all about targeting specific workloads with the appropriate AI. These tools are not sentient beings they are tools that need to be properly configured to match the job at hand.
Re: AI subscriptions are a ticking time bomb for enterprise
#44Article is mistaken these subs are not available to businesses. Companies are paying much closer to API prices. The strategy is to get you accustomed to infinite tokens on your personal sub and bet that behavior transfers to work.
Not only that, but the API rate amounts being pearl clutched over in the article are still relatively trivial. 10k a month is not nothing, but when 10k a month enables a team of ~10-20 engineers, that's pretty good leverage.
Re: AI subscriptions are a ticking time bomb for enterprise
#45The FED will print to infinity as the US gov can’t stop spending, mostly all of that money will keep going to the only industry that’s growing and provides crazy returns for family offices and VC’s right now which is AI. I don’t agree with the authors opinion here as the “time bomb” timer is simply the entire world buying US debt here, which won’t happen in the short/medium term
Re: AI subscriptions are a ticking time bomb for enterprise
#46Earlier quoted context omitted.
This is the sort of uncritical thinking that inflates bubbles in the aggregate.
Compared to the inference prices for open models it’s highly unlikely OpenAI/Anthropic are not making decent amounts of money from inference. How many times bigger could Opus be than GLM or Kimi, it’s certainly not proportional to the price
it’s highly unlikely OpenAI/Anthropic are not making decent amounts of money from inference.
Re: AI subscriptions are a ticking time bomb for enterprise
#47Eventually, after the seed funding is spent, you will have to pay the real cost of the coal used to power your queries.
The best course of action is to take advantage of subsidy for awhile, but not integrate is so deeply one can’t retreat. You’ll still have full productivity, just be cognizant of the reality of the situation.
Hopefully the market eventually collapses to where companies are hosting their own inference, and you simply lease a model package to run on your own (or rented ) specialty hardware.
Re: AI subscriptions are a ticking time bomb for enterprise
#48I think I'm going to puke if I see one more "It's not X. It's Y." phrase or the word "load-bearing" used metaphorically.
It is not human language. It's AI slop!
Re: AI subscriptions are a ticking time bomb for enterprise
#49Those price increases will increase the pressure to use cheaper / free models (commoditization), thus cutting into the revenue projections of the frontier model vendors. Its going to be exciting to see what happens to these huge investments and valuations.
> increase the pressure to use cheaper / free models Not necessarily. Many factors go into what models are available at enterprise level. If you look around, not many companies (everywhere around the world) use DeepSeek models even though they are significantly cheaper.
I think part of this is due to the fact that the closest competition cheap but comparable intelligence models are all mostly Chinese models.
Think what you want but even when hosted in the US, at the enterprise level going all in on that would be a legal and/or political death sentence.
We need better open source/cheap but high intelligence western models that are proven to work well in agent if tooling and have strong legal agreements for enterprise to even consider it.
Re: AI subscriptions are a ticking time bomb for enterprise
#50Even if they are momentarily losing money it’s important to note the value add they are providing. If you increase the price, the value is still astronomical in comparison. Companies need to find a way to leverage local models in tandem with frontier models to offset the costs. It’s all about targeting specific workloads with the appropriate AI. These tools are not sentient beings they are tools that need to be prope…
You could use "git clone" or Wikipedia for free. If you mean the value of propagandizing gullible people, yes, there is "value".