What margins? AI’s business model is changing fast, says Cohere founder

August 19, 2024: AI Price War Squeezes Margins, Says Cohere CEO - Cohere CEO Aidan Gomez highlights the precarious state of the AI model market due to fierce competition and price dumping. Companies like OpenAI, Google, and Meta are slashing prices, making the business of selling AI model access a zero-margin game. Big Tech can subsidize these losses, but startups suffer. Many are being acquired by large cloud providers. Until the AI market stabilizes, selling products, like subscriptions, is a safer revenue strategy.