this post was submitted on 02 Jun 2026
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The crazy thing is, this isn't really a "squeeze" in the traditional sense. The problem was that every single mainstream AI product has been heavily subsidized....because it's wildly expensive and not even close to being profitable.
That sort of subsidization was only going to last for so long. The dam is starting to crack. People aren't ready to pay what AI truly costs.
And it doesn't seem like they ever will be. The LLM value proposition is already dubious at today's subsidized rates.