Comment by fakedang
8 hours ago
Their loss if they don't move to regional pricing. AI will continue to remain an upper-management luxury then, and won't reach the mass adoption required to justify their outsized valuations.
8 hours ago
Their loss if they don't move to regional pricing. AI will continue to remain an upper-management luxury then, and won't reach the mass adoption required to justify their outsized valuations.
Regional pricing makes sense for products that don’t have ongoing costs or where most of the input cost can be offset by local labor. You’re not buying server racks nor electricity at 1/3 of the price to serve poorer markets
AI pricing is not mainly about cost, it's about market realities, i.e., charging exactly the sweet spot to maximize profit.