Burn-rate Memes

The brutal economics of AI in one image. Companies are out here charging $150/month while their actual cost per user is like... $590. That's not a business model, that's a charity with extra steps and venture capital funding. Meanwhile they're looking at their pricing tiers ($1, $2, $3, $590) like "yeah, this makes total sense" while sweating profusely. GPU compute costs are eating these companies alive, and they're just hoping to scale their way out of the problem before the money runs out. Fun fact: OpenAI reportedly lost around $540 million in 2022 while building ChatGPT. Turns out running massive neural networks on expensive NVIDIA hardware for millions of users isn't exactly a path to profitability. Who knew?