AI is becoming increasingly expensive – and companies are starting to rethink their embrace of the disruptive technology.
Playing by Silicon Valley’s well-worn playbook, fake intelligence companies charged rock-bottom prices to capture customers after ChatGPT burst onto the scene.
Kevin Simback of startup startup Delphi Labs calls it the era of “subsidized intelligence” — meaning that investors were essentially footing the bill so companies could produce AI cheaply.
“But the tide is starting to turn,” Simback warned, and the time when big AI companies need to raise money has begun, with leaders OpenAI and Anthropic looking to go public and attract high street investors later this year.
Prices are increasing across the board and one big reason is AI agents.
Unlike chatbots that only answer questions, agents actually do things – book appointments, write numbers and manage files. And it is expensive to implement because a single job can include several agents working at once, each charging a fee.
