”The company reports over 900 million weekly active users of ChatGPT, though only about 50 million of those are paid subscribers.”
With so many free models available the ai companies are going to struggle to convert active free users to paid.
With so many free models available the ai companies are going to struggle to convert active free users to paid.
the biggest reason for this is that the digital ad market is a duopoly (charitably a triopoly if you count Amazon in), if all of the LLM companies start to go into ads that's going to be a much more competitive market for ad buyers. It's not going to be so straight forward when both customers and merchants have ten different places to go.
Also not to forget that ChatGPT has zero moat, unlike social Facebook and Google.
I think that AI is going to become just another utility people pay to stay relevant. Same as their internet, electricity or gas.
I think there's an assumption that current costs, which are high, will remain high.
Most of that seems to be going to model development, rather than model operation, which is the product we all use.
To me the most likely option will be, that development slows and prices rise somewhat, as they can't keep burning cash forever. But I'm willing to pay a little bit more, considering how powerful the tool is.
I'm guessing that might be so in certain professions, but I would expect the employer to pay for that. For the rest of us, it seems unlikely. At least for me, I don't have a need of a device to generate text for me. And I bet most people are are in the same boat as me.
They don’t care about making money at present