AI costs spike as subscriptions hit pricing wall — firms turn towards Chinese LLMs, open-source models to extend budget

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AI costs spike as subscriptions hit pricing wall — firms turn towards Chinese LLMs, open-source models to extend budget
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Summary

Companies look for cheaper alternatives as token costs for frontier AI models skyrocket, potentially impacting OpenAI and Anthropic's bottom lines. Subscriptions also take a bite out of these startup's profitability, as utilization rates higher than 5.7% could lead to losses.

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