Consumers of AI do have sensitivity to pricing. Many OpenAI customers "ration" their usage. I imagine lower costs open up new demand for these people.
On the Service side: it seems to have reduced the cost of operating a "commercially viable" (something people will actually pay money for) LLM. But even beyond that, "self hosted" models are also far more affordable now, which means models that target specific niches can be viable to build or buy.
However, this won't be an overnight phenomena. In the short-term, it will seem like demand drops, but in the long-term demand will go up. Big caveat: that demand may not be concentrated on the current incumbent players.
And finally, the elephant in the room: AI still needs to become more useful to reach its full potential. Easily a decade+ more needed here.
Consumers of AI do have sensitivity to pricing. Many OpenAI customers "ration" their usage. I imagine lower costs open up new demand for these people.
On the Service side: it seems to have reduced the cost of operating a "commercially viable" (something people will actually pay money for) LLM. But even beyond that, "self hosted" models are also far more affordable now, which means models that target specific niches can be viable to build or buy.
However, this won't be an overnight phenomena. In the short-term, it will seem like demand drops, but in the long-term demand will go up. Big caveat: that demand may not be concentrated on the current incumbent players.
And finally, the elephant in the room: AI still needs to become more useful to reach its full potential. Easily a decade+ more needed here.