Speaking during an interview on CNBC’s “Squawk on the Street” segment earlier this week, CEO of cybersecurity giant Palo Alto Networks Nikesh Arora implored the tech industry to lower the cost of AI.
During the segment, the chief executive argued that the cost to use large language models (LLMs) has to drop by 20 percent by 2027 — and 90 percent by 2028 — for the tech to be useful to enterprises.
“We need to see the pricing for AI come down,” Arora said.
More than that. At the current discount prices, LLM providers bleed money like mad. They will run out of cash soon if they don’t raise the prices to profitable levels. Just double won’t cover it.
Which will lead to most customers dropping the LLM services stat. Which in turn will force the LLM providers to up their prices even more…
When my last employer opened up a publicly available chatbot they asked us not to test it because of how much it costs. It was a sales bot, we had recently had the company decimated by redundancies.
A common act of protest was to abuse the public chatbot from a non work device.