On: OpenAI mulls slashing prices as it competes with Anthropic for users

[broodbucket]

Enterprise market is paying by token and using a lot of tokens. Consumer market is paying a subscription that they can't raise too high or they'll lose users to competition. Seems to me that the enterprise market scales a lot higher.

[stingraycharles → broodbucket]

Enterprise / B2B has always been easier and more lucrative. Once a large enterprise integrates with your product, they won’t move away unless there’s an actual issue. So then the “moat” becomes the contract.

Meanwhile, OpenAI is spending ludicrous amounts on things like a Sora-TikTok app in order to create a network effect, and failing at it.

Seems pretty obvious to me what the better strategy is.

[WarmWash → broodbucket]

The consumer market by and large pays $20/mo to get tokens in response to stuff like

"My friend hurt my feelings and I don't know how to approach the problem" routed to whatever the default model is.

[byzantinegene → broodbucket]

it's really not much compared to the amount they are spending on training. 100 developers at $200 per month is just $20000

[naveen99 → byzantinegene]

$240,000

[skeptic_ai → broodbucket]

Have you seen many corporations complaining and caping usage to 20-200usd per developer per month. I doubt will change much. Many are considering on premise now.