Subsidized AI Prices Won't Last

Big AI labs are currently underpricing services (subsidizing user growth) using VC or strategic capital, but as they approach public markets and profitability targets they will raise prices to improve margins. That transition matters because cheaper per‑unit compute doesn't stop total customer spend from rising when usage and capability expand. — If AI user prices rise, it affects who can access advanced tools, how firms price products, and the political economy of regulation and infrastructure subsidies.