this post was submitted on 06 Jun 2026
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That business model assumes that the huge cloud models will always maintain a gap worth paying for, compared to the local models. I'm just not convinced that the average consumer will need cloud models for summarizing their emails or the news of the day.
And for actual costs of their data centers, there literally aren't enough humans in the world where $20/month AI spending per person will help them break even. They'll need to sell big accounts (many businesses spending billions per year) in order to break even.