Consumer AI is a race to give away compute: high COGS meets users who won't pay
dragon_khoi · x · 2026-09-25
- Consumer AI faces a squeeze: model COGS are very high, yet most people still don't pay for software.
- Gaining mainstream usage is effectively "a game of who can bear to give away the most compute for free."
- dragonkhoi replies that the winner will be whoever builds a business model where the consumer doesn't have to pay at all.
Related event: Consumer AI Becomes a Compute-Burning Race as Model Costs Soar(2 posts)→
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