Palo Alto Networks CEO Arora calls for LLM fee cuts
Business
Palo Alto Networks CEO Nikesh Arora thinks AI is just too expensive right now.
In a CNBC interview, he said high costs are holding back wider use, especially since AI isn't living up to its promise of automating human work.
Arora wants fees for large language models (LLMs) cut by 20% by 2027 (and by 90% by 2028) so businesses actually get value from AI.
Ed Zitron calls AI prices inflated
Tech critic Ed Zitron backed up Arora's point, calling the current AI market a "$10 to $30 billion [total addressable market] industry pretending to be a $1 trillion one."
He thinks prices are inflated because of hype and unrealistic expectations, and both he and Arora wonder if what companies pay for AI really matches what they get out of it.