The original sin of OpenAI was to release ChatGPT as a consumer product with consumer pricing. Three years later, the models have gotten so good that the value they provide to business far exceeds what they pay for it.
Claude Code is ridiculously cheap for what it does.
The model companies are in a race to become net profitable before investors pull the plug on their valuations.
At some point, the industry will have to have expensive business tier pricing. If they don't, someone's going to go bankrupt, forcing everyone to re-evaluate their pricing.
So, will the AI industry pause their cut throat competition long enough to engender a soft landing with higher margins, or will someone have to crash and burn first?
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