AI Subscription Price Hikes Imminent

The human mind's energy consumption is far more efficient than large language models. Even a genius like Einstein or Poincaré used 30 watts max. 🙂 In contrast, META's Lama 2.0 front tier model required 700 MWh and later versions much more. AI service providers are using brute force as opposed to finesse in their struggling attempt to outperform human intelligence and creativity. Throwing lots of power and GPUs will not lead to the Singularity. AI advocates calls it 'scaling', but I call it 'diminishing returns'.

As a result of the brute force approach, AI service providers are losing money on their $20 a month subscription plans due to the high cost of compute and power. VC money pays not just for infrastructure, but also the AI service provider's operating costs. In New York video rendering companies believe the AI services they buy are definitely below cost, yet are still not easy to use. At some point the introductory pricing will disappear in order to cut losses and AI service demand contracts.

https://www.mindstudio.ai/blog/ai-pricing-shock-end-of-cheap-subscriptions

Screenshot of Article Stating that $20 A Month AI Subscriptions Are Unsustainable


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