AI companies are reconsidering their adoption of the technology as costs rise after an initial period of heavily discounted pricing.

AI companies initially charged rock-bottom prices to attract customers after ChatGPT's release, following a standard Silicon Valley approach.

Kevin Simback of startup incubator Delphi Labs describes this initial phase as the era of "subsidized intelligence" — with investors covering the cost so companies could offer AI cheaply.

Companies are now starting to rethink their embrace of AI as the technology becomes more expensive.