this post was submitted on 02 Jun 2026
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These costs are far less obfuscating. AI companies have been trying to hard to hide the true costs of computation for a long time, but the need to pay for what they're doing is catching up to them. They have been massively subsidizing all of their users by charging a flat fee and not making them pay for the actual computation costs.
Here's a great article about what's going on: https://www.wheresyoured.at/ais-economics-dont-make-sense/
Yeah, that’s kind of what I’m gathering is happening. The adoption phase of the business model is long gone and they are now trying to recoup and keep the whole thing afloat in spite of the how unsustainable it is.
I bookmarked that article, Ed is one of the writers I’m always meaning to check out.