Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

The generative AI future will not be free

Jan 19, 2024 - businessinsider.com
The era of free internet services may be coming to an end as Big Tech companies start charging for generative AI services. Companies like Amazon and Google are considering paid subscriptions for their AI offerings due to the high cost of building and running AI models. For instance, Amazon's Alexa voice-powered service, previously free, is now working on a paid version powered by a new large language model. Similarly, Google is contemplating paid subscriptions for its advanced AI services.

The shift towards paid AI services is also driven by the pressure on tech companies to demonstrate revenue growth and strong profit margins, especially amid a recent advertising slowdown. Ads may not work as well in the generative AI future, as AI chatbots providing straight answers to users leave less space for ads. Therefore, charging for new generative AI services is seen as a way to create new earnings and keep investors satisfied.

Key takeaways:

  • Generative AI technology is expected to shift the trend of free internet services to paid subscriptions, as seen with Amazon's Alexa and potentially Google's new AI offerings.
  • Running large language models for generative AI is currently very expensive, requiring substantial investment in hardware and resources.
  • Traditional ad-supported models may not be as effective with generative AI, as AI chatbots providing direct answers leave less space for ads.
  • Big tech companies are under pressure to demonstrate revenue growth and strong profit margins, and charging for new generative AI services could be a way to create new earnings streams.
View Full Article

Comments (0)

Be the first to comment!