AI Models Hitting a Profit Wall?

The AI market is a crowded lot with various models at play as giants like OpenAI, Anthropic, Cohere, Meta, and Google continuously refine their offerings.

However, the key question is: Which models will the developers choose to integrate into their application layers? Will it be GPT-4o, Claude 3.5 Sonnet, Command R+, Llama 3, or Gemini 1.5 Flash? And how long can AI startups and tech giants continue to impress developers by offering their AI models for dirt-cheap prices—or even free in some cases?

The struggle is real 

“If you’re only selling models for the next little while, it’s gonna be a really tricky game,” said Cohere founder Aidan Gomez in a recent interview. By selling models, he meant selling API access to those AI models. OpenAI, Anthropic, Google, and Cohere offer this service to developers, and they all face a similar problem.