> For example, Microsoft is keeping prices of Copilot temporarily free for as long as possible to destroy competitors who can't compete with the best tool available for free.
Yes, their recent "copilot is free" tactic is obviously to crush Cursor and the like.
> Until there are enough AI startups shutting down and a few of them have gone public on the stock market. The prices will start to rise by $0.50 - $1.50 per million tokens very slowly.
At the same time, advances in GPU and inference optimizations will likely push back against price increase. That said, you're right about lock in—if that happens, then even technological progress in GPUs and inference wouldn't stop companies from raising prices.
Yes, their recent "copilot is free" tactic is obviously to crush Cursor and the like.
> Until there are enough AI startups shutting down and a few of them have gone public on the stock market. The prices will start to rise by $0.50 - $1.50 per million tokens very slowly.
At the same time, advances in GPU and inference optimizations will likely push back against price increase. That said, you're right about lock in—if that happens, then even technological progress in GPUs and inference wouldn't stop companies from raising prices.