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AI’s economics: Why marginal costs are key for businesses
short by Arin Verma / on Tuesday, 31 December, 2024
AI models like GPT differ from traditional software as they incur costs for every use. For instance, generating an AI-written article might cost $0.05 per query, which scales significantly with millions of users. Businesses must balance quality and cost, offering options like cheaper, less accurate outputs or premium services for specialized needs. Marginal costs will redefine AI economics.
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