alt Hacker News> The subscription services have assumptions baked in about the usage patterns; they're oversubscribed and subsidized.
Selling dollars for $.50 does that. It sounds like they have a business model issue to me.
> The subscription services have assumptions baked in about the usage patterns; they're oversubscribed and subsidized.
Selling dollars for $.50 does that. It sounds like they have a business model issue to me.
This is how every cloud service and every internet provider works. If you want to get really edgy you could also say it's how modern banking works.
Without knowing the numbers it's hard to tell if the business model for these AI providers actually works, and I suspect it probably doesn't at the moment, but selling an oversubscribed product with baked in usage assumptions is a functional business model in a lot of spaces (for varying definitions of functional, I suppose). I'm surprised this is so surprising to people.