AI costs spike after $500 million bill, Sam Altman admits
Technology
AI tools are getting expensive, so much so that one company was hit with a jaw-dropping $500 million bill for using Claude in just a month.
Businesses are feeling the squeeze as providers pass on hefty infrastructure costs.
Even OpenAI CEO Altman admits pricing is now a real headache for companies trying to make AI work.
OpenAI considers cutting prices
To keep users from jumping ship, OpenAI is thinking about slashing prices, especially with Anthropic gaining ground thanks to its enterprise-focused coding tools.
But both companies are under pressure: running massive data centers isn't cheap and profits are slim.
With both firms quietly filing for IPOs recently, their next moves could make or break how investors and users feel about them.