AI Was Supposed to Get Cheaper. Here’s Why It’s More Expensive Than Ever for Startups.

AI Was Supposed to Get Cheaper. Here’s Why It’s More Expensive Than Ever for Startups.

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From wsj.com: What if I told you that the promise of cheap artificial intelligence is turning out to be a costly illusion? As AI technology evolves, developers are racing to harness its power for applications like software creation and document analysis. But here’s the twist: the costs associated with these AI tools are skyrocketing, leaving many to wonder if the dream of affordable AI is fading. Recent reports reveal that developers purchasing AI in bulk are facing bills that exceed their expectations. For instance, companies that anticipated low costs for AI integration are now grappling with rising expenses, creating tension in their budgets. This unexpected financial burden raises critical questions about the sustainability of AI investments. In conclusion, while AI was expected to revolutionize industries at minimal cost, the reality is proving more complex. As expenses climb, businesses must reassess their strategies and consider the long-term implications of these investments. Learn more about this at wsj.com.

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By Christopher Mims Illustration: Daniel HertzbergAs artificial intelligence got smarter, it was supposed to become too cheap to meter. It’s proving to be anything but.Developers who buy AI by the barrel, for apps that do things like make software or analyze documents, are discovering their bills are higher than expected—and growing.Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8