The AI pricing paradox: AI PCs might be the answer to spiralling cloud costs for some, but that doesn't mean cloud…
Now that AI vendors have us hooked and using generative and agentic tools, pricing models are shifting. Subscriptions are no longer loss-making models designed to attract experimental customers, because they now need to serve a much more important purpose – make back money.
How this might look is still largely being figured out, but already we're seeing major software vendors ditch per-seat pricing in favor of token consumption or outcomes.
What this is likely to mean for corporate and enterprise customers is that AI is about to become a whole lot more expensive – but it's not all bad news because these companies also have the opportunity to gain more control over certain spends.
Step forward the AI PC, which is increasingly capable of running small models locally and handling basic and even some mid-level generative tasks without ever needing to spend a cent in the cloud. A few months...
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