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I don't think they are clueless, but rather, struggling. Being an AI provider is a money burner, and they probably don't have enough fuel for the fire anymore, so they are trying things to squeeze more $$$ and limit usage at the same time.

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I don't really expect a company run by radical effective altruists / ai doomers to have good business sense.

They had a decent product and squandered a lot of dev goodwill almost overnight.

I see your point, but I'd be surprised if they'd lose a significant user base in the end; the hype is just way too high

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