AI's Economics Don't Make Sense
AI's Economics Don't Make Sense AI's monthly subscription model is a scam, companies like OpenAI hid the true per-token costs behind flat fees, letting users burn $8-13 in compute for every $1 of subscription This trained everyone to use these products in ways that are economically impossible to sustain. GitHub Copilot's June 2026 shift to usage-based pricing is the first domino: Microsoft, the best-capitalized player, can no longer eat the losses, and once Anthropic/OpenAI follow suit on consumer tiers, the hype collapses because real costs are brutal The data center math is worse. A 100…
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