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AI doesn’t sound particularly profitable.
Despite charging $10 a month for GitHub Copilot, The Wall Street Journal reports that Microsoft is losing an average of over $20 per user, per month. This highlights the frankly challenging economics of providing AI services, which are not just expensive to build, but also expensive to operate. “Using [AI] to summarize an email is like getting a Lamborghini to deliver a pizza,” the WSJ notes.
AI’s Costly Buildup Could Make Early Products a Hard Sell
[The Wall Street Journal]
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