Has the generative AI pricing collapse already started?

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OpenAI just announced pricing for businesses seeking to integrate its ChatGPT service into their own products, and it looks an awful lot like a 90 percent off sale.

It all starts with OpenAI, a former nonprofit that’s now gunning for riches as lustily as any Silicon Valley unicorn. The company has built a dazzling array of products, including the DALL-E image generator and the renowned ChatGPT service.

ChatGPT is powered by a system known as a large language model (or LLM), and it’s one of several LLM lines that OpenAI sells commercially. Buyers of LLM output are mostly companies that integrate language-related services like chat, composition, summarization, software generation, online search, sentiment analysis, and much more into their websites, services, and products.

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