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this post was submitted on 10 Aug 2025
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A lot of startups whose entire business model relies on OpenAI's small model API calls costing under $1/Mtok, are going to go bust when OpenAI finally runs out of money and ramps the cost up tenfold.
good point, it's all been artificially priced to get users onboard then dedicated.
Yep it's blitzscaling. Run it at a loss until it's a necessity, then charge whatever the hell you want. They're blitzscaling our right to intellectual property and our right to work.
TIL there's a word for it. Thanks
How does it impact your right to work?
ive seen a ton of billboards of startup AI comp in west coast, i assume every new one that appears on these billboards, the old ones go under.
It would be just cheaper to self-host something for the whole company then? Open-source AIs are there and they are very much competitive with proprietary solutions.
If you want OpenAI level response times you might be surprised how expensive self-hosting gets.