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Without Subsidies, AI Is Unaffordable (charleshughsmith.substack.com)

submitted 2 days ago by technocrit@lemmy.dbzer0.com to c/fuck_ai@lemmy.world

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AI is based on massively subsidizing users’ costs. Once those subsidies end, what’s left are costs, not profits. Play that any way you like, but massive subsidies are not sustainable, though they generate a temporary illusion of viability that can be exploited by those selling a fantasy of future profitability to credulous investors and enterprises.

Left unsaid is a lot of money is being gambled on the illusion that subsidies are sustainable. They’re not. Enterprises don’t have profits, they have costs.

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[-] chunkystyles@sopuli.xyz 4 points 1 day ago

There are lots of problems with this approach, though. The product isn't worth the non-subsidized prices. And also, free, self hostable models exist and are also getting better every day.

So it's too expensive and they can't completely corner the market.

this post was submitted on 11 Jul 2026

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