Users pay $10 per month for the subscription, but in the first months of 2023 Microsoft was losing an average of $20 per user, with some users costing the company more than $80 per month. A veritable “money pit that doesn’t pay off,” writes Gizmodo.
Other AI platforms are experiencing similar financial difficulties. OpenAI’s ChatGPT has a shrinking user base and incurs high operating costs. The energy intensity of AI, combined with the significant costs of computing power, AI infrastructure, and cloud capacity, makes these platforms economically challenging.
Meanwhile, tech companies are experimenting with strategies to reduce costs and processing power while delivering promised services, which impacts the performance of their models.
Source: Ferra
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