Generative AI is taking the world by storm, but companies’ success may depend on one key factor: the ability to keep prices low. By looking at the cloud infrastructure wars of the past, we can uncover relevant lessons that businesses should consider when navigating their pricing strategies.
With this post, we aim to provide a comparison of the market pressures faced by generative AI companies, drawing parallels with cloud providers and how those pressures will influence their future decisions:
- Part I delves into the impact of pricing wars on cost-cutting measures in cloud infrastructure and how it’s relevant today.
- Part II focuses on the current challenges facing generative AI companies and the strategies they should employ to maintain their competitiveness.
No matter where you stand on this issue, there’s no denying that generative AI companies must make smart decisions in order to succeed in this market — the kind of decisions that will have lasting implications for the industry.
Let’s dive in.
