I keep asking our product team what the plan is when our API/Infra costs eventually skyrocket and our AI features become unsustainable, but there's absolutely zero preparedness.

We throw in all these cute little AI features to fill out marketing bullet points because they're basically free, but if they had real cost we're going to have no choice but to take them away.

I think a lot of usage will move to the cheap open weight Chinese models once there is an incentive to do that. Everything below the highest end frontier models are becoming commoditized and I suspect the commodity segment will pass the "good enough" bar for most applications.

Yeah, and I doubt that this is the last price hike. But I don't think this actually has a whole lot to do with ram prices. The thing is, AI cloud providers have generally been running at a massive loss, if you do the napkin maths, the procurement cost of these machines is equivalent to approximately a year of rent at these rates, for normal servers at AWS it is approximately a month.

It'll hit all of us, not just the AI "industry"

As a user of Claude I have been worried about this.