Something that Meta has that OpenAI and Anthropic don't have is Meta is a massive advertising business. They only get paid based off of how much you're using the models. Meta is getting paid by how much time you spend scrolling on Facebook and on Instagram. Therefore, they can use all that ad money to subsidize their ability to roll out a new AI agent platform.
The bring your own subscription stuff, it sticks out because it feels like it's potentially like the beginning of a new economic structure. Like is this an app store where there will be a margin that occurs to OpenAI or is this more just like better for discovery?
The pricing of these AI models is clearly becoming front of mind for enterprises, and it is very quickly becoming a race to the bottom. Open AI and Anthropic can only play that game for so long because where are they getting their money from? They're not getting it from profits. They're getting it from venture capital.
Supposedly Cloud Pro or Cloud Max, it cost $200 a month, but supposedly right now it cost them $5,000 a month to for the compute and the chips to offer you that service. So they're trying to just capture a ton of share.
3mo ago
Underscored — save the words that stop you in your tracks.
