Generative AI to Get a “Cold Shower” in 2024 as Microsoft Reportedly Lost up to $80 per Each $10 Copilot AI Subscription in 2023

Peter_Brosdahl

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New reports suggest that investors are becoming wary of rising costs and that generative AI will be getting a cold shower in 2024. AI has definitely been a big buzzword through 2023 but now as more reports of its costs come in the hype train could be slowing down. One such report comes via The Wall Street Journal which detailed how Microsoft worked with OpenAI to launch its CoPilot AI service at $10 on GitHub. According to the WSJ's findings, Microsoft was losing more than $20 per user, per month, and in some cases up to $80. While it is common to lose money when investing in a new business venture the sustainability of such losses comes into question. Google is also mentioned in the report, in regard to the strategies that some companies may employ to make AI profitable. The short end of it is increased service prices.

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All of that compute is **** expensive is what happened here. They have to offset the costs of growth and power and space.

I don't think the cost of course is sustainable. But they have to assign the cost against income and showing losses while building out the datacenters and investing in the infrastructure is important.
 
Yeah, my jaw dropped when I recently saw that NV's GPUs for AI were going for between $15K and $30K a pop.
 
Wait, Co-pilot costs money? I thought they were just dumping it on unwitting and unwilling participants through the OS?
 
I didn't see generative AI as the buzzword of 2023, most of the time when it came up it was discussion about whether it is even legal to use and copyrightable.
 
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