this post was submitted on 28 Jul 2026
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Fuck AI

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A place for all those who loathe AI to discuss things, post articles, and ridicule the AI hype. Proud supporter of working people. And proud booer of SXSW 2024.

AI, in this case, refers to LLMs, GPT technology, and anything listed as "AI" meant to increase market valuations.

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[–] slaacaa@lemmy.world 25 points 13 hours ago

At their very core, Large Language Models' costs run contrary to basically every model of selling software.

Consumers and enterprises alike have been trained to pay a monthly fee for a service, and while these services might have limits or strictures, basically nobody buying software expects to have a metered service, let alone one that's both metered and with hard to measure costs.

LLMs burn tokens at a per-million rate regardless of whether or not you get the response you want, or whether it does what you ask it to do. If you ask a coding agent to do some sort of software task and it goes off and spins its wheels in a loop, you're paying for the tokens regardless.

AI companies knew that consumers would never pay the actual cost of their AI services, so they have, for the most part, sold them monthly subscriptions with vague rate limits that allow them to burn way more in tokens than the cost of their subscription. SemiAnalysis found that you can burn hundreds of dollars on a $20-a-month subscription and thousands of dollars on a $200-a-month subscription, and while AI boosters will claim that these companies have "70% gross margins on tokens," there is little proof that this is the case, and my own reporting shows that OpenAI lost $20.9 billion on $13.07 billion in revenue in 2025.