AI Firms Pivot to Cost as Cheaper Models Lift Demand — SkimNews
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- AI companies are pivoting from years of competing on capability — building the "best and often most dangerous" models — to competing on cost.
- Cheaper models that retain powerful levels of intelligence have boosted usage, addressing what the source identifies as the AI boom's biggest risk: demand.
Why it matters: The source frames demand as the single biggest threat to the AI boom, so innovations that make models cheaper while preserving capability directly counter that risk — rising usage from these cheaper models becomes the bullish counterweight that keeps the growth thesis intact.
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