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Ever run an AI model locally? If you want the most capability you need a fast GPU with 32-48gb RAM. And that's all for you, ONE user.
Copilot has millions of users, with tens or hundreds of thousands of them hitting the AI all at once. Each one needs $thousands worth of GPU and RAM dedicated to them for the length of their query processing.
Where do you think the money to buy all that hardware comes from? You see OpenAI buying a double digit percentage of the world's RAM production, you think they got it on clearance sale?
No, there are investors. Investors who are pouring hundreds of billions into this AI stuff. And they don't do this because it's fun, they do it because they expect a BIG return.
So what's going on is just like your neighborhood drug pusher, only the drug pusher is more honest. He says 'first hit's free, man'. AI company says 'AI models are an easy and cost effective way to modernize your workflow!'; they don't tell you that once you've integrated them and fired all the humans who know how to do the work, the price is gonna go way up.
Because the fact is, there IS a real cost of AI compute. GPU time, or at the large scale, datacenter space, power, cooling, etc.
In another few months to few years, the C-suites will stop huffing the koolaid and will start doing cost-benefit analysis on where AI is and isn't cost-effective vs. humans. With any luck (for the AI people) by that time the AIs will be good enough that it's a clear benefit. If not this bubble's gonna pop.
