It seems like the question is whether you believe in cost-based or value-based pricing. The cost of AI for the same amount of power is going down a lot year-to-year. [1]
If market prices go down with costs, then we see something like solar power where it’s everywhere but suppliers don’t make money, not even in China.
Or maybe customers spend a lot more on more-expensive models? Hard to say.
If market prices go down with costs, then we see something like solar power where it’s everywhere but suppliers don’t make money, not even in China.
Or maybe customers spend a lot more on more-expensive models? Hard to say.
[1] https://simonwillison.net/2025/Feb/9/sam-altman/