[beloch]

Remember the model:

1. Outspend and outlast your competition until you have market dominance. Win over and lock in your customers with sweetheart deals.

2. Enshittify and squeeze your customers to pay back your debt.

If you're using AI, you're not paying the true cost right now because we're in phase 1. Be ready for phase 2.

[sothatsit]

Or, tokens are more like energy and prices will drop over time until they reach some equilibrium.

The big labs are actively moving into the application layer, where they’ll have more pricing power. Maybe that layer will end up with a Mac (Anthropic) vs Windows (OpenAI) vs Linux (open-source) dynamic as well if they can create a moat. But so far it’s pretty easy to move between providers.

[xigoi]

> Or, tokens are more like energy and prices will drop over time until they reach some equilibrium.

In that case, AI companies will never get their money back, leading to a huge crash.

[fc417fc802]

Given that the likes of openrouter exist I'm not sure how phase 2 is supposed to work.