Can you make profits with AI tools?
12. October 2023Can you make profits with AI tools?
San Francisco, October 12, 2023
According to the Wall Street Journal, Microsoft is losing money with its AI code generation service GitHub Copilot. The news was part of a larger story about how technology companies, including Microsoft, Google and OpenAI, are struggling to make profits from their generative AI tools.
While Microsoft charges $10 per month for GitHub Copilot, the company loses an average of $20 per user each month, with heavy users up to $80 per month.
The platform, based on OpenAI’s language models, helps programmers by suggesting code as they work. The high cost is due to the expensive hardware and electricity required to train and operate the models.
Companies are now experimenting with new pricing strategies, such as charging higher fees for AI-powered software upgrades, to offset costs.
Microsoft plans to launch its 365 Copilot for enterprise users on November 1, which will cost an additional $30 per month per user for AI features.
Microsoft is also exploring cheaper ways to run its AI services, including developing its own AI chip.
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