New AI assistants for regular people are getting popular, like Meta's Muse and OpenAI's Dots. But a report from the investment firm Andreessen Horowitz shows few people pay for AI. As of May, only 2.2 percent of consumers paid, spending about $31 a month. Growth looks slow and steady, not a rush, even as models improve. So AI firms are shifting toward selling to businesses.
π The Backstory
AI is costly to run compared with older tech like social media or cloud storage. Even hundreds of millions of paying users may not cover the bills. OpenAI has shifted toward business clients, and its business bookings reportedly doubled since July. Meta's Muse can lean on ad targeting, while the startup Instinct plans to take a cut of purchases made through its assistant.
π― Why It Matters
Free or cheap AI may not last as companies chase profit. Knowing that firms earn more from businesses than consumers helps people understand why prices and features could change.
New AI assistants for regular people are getting popular, like Meta's Muse and OpenAI's Dots. But a report from the investment firm Andreessen Horowitz shows few people pay for AI. As of May, only 2.2 percent of consumers paid, spending about $31 a month. Growth looks slow and steady, not a rush, even as models improve. So AI firms are shifting toward selling to businesses.
AI is costly to run compared with older tech like social media or cloud storage. Even hundreds of millions of paying users may not cover the bills. OpenAI has shifted toward business clients, and its business bookings reportedly doubled since July. Meta's Muse can lean on ad targeting, while the startup Instinct plans to take a cut of purchases made through its assistant.
Free or cheap AI may not last as companies chase profit. Knowing that firms earn more from businesses than consumers helps people understand why prices and features could change.