Which is why things like local LLMs are important.

The good local LLMs are also loss leaders, a company spends a lot of money training a model then gives it away for free in the hopes they can eventually pivot to an actual business model. The work being done with local LLMs seems to take for granted that Mistral and co will just keep shoveling investor money into the furnaces forever to keep the free LLMs coming, and there is no contingency plan for when that money runs out.

Likewise local image generation is almost entirely dependent on the charity of one company, and per the OP that company is on the verge of going broke.

There will be an enshittified ad supported tier. You’ll never know when the model is hallucinating and when it’s actively trying to manipulate you. It’ll be great.

The real fun begins when the manipulations are driven by hallucinations.

Thus we'll circle right back to affiliate spam blogs

I am not worried about GPT4 like this but GPT6 or GPT7.

On the other hand, I think of how at the individual level if they price me out then they don't have a mass scale product.

I suppose I worry far more about this with Sora too.

I have also spent about $300 on Midjourney in the last 18 months but I don't know how to spend money on Stability.

I used to think Adobe was in trouble with Stable Diffusion and Midjourney.

Now I realize that Adobe knows how to make money. They'll just add the AI models to Photoshop, Premier, etc and charge an extra $50/month and voila.

However, Stable Diffusion and Midjourney does not have a solid vehicle to making money.

Maybe in the long term, no one will care about using Photoshop anymore. But we're not even close to there yet. AI models seem to make Photoshop even more valuable.

GPT4 is different. OpenAI has made monetization its goal from the start by charging $20/month for GPT4 in ChatGPT and charging loads of money for the API. Also, they have the backing of Microsoft.

I’ve attended two local Adobe Create Now events where they demoed their new AI functionality. It’s so well integrated- I’m impressed despite usually disliking them. The key point I got from both events was their emphasis on training exclusively on content they already had licensed through adobe stock so you wouldn’t need to worry about accidentally infringing so much

Yeah this is my experience as well, gen AI is so well integrated into Photoshop. It's the only software I've used to far where AI integration actually improved the experience. Removing things from pictures used to be a painful process where I'd use the spot heal tool as much as possible then touch up the bad bits manually. Now it's a selection and a sentence, and I have multiple variations I could never have hoped to replicate manually. Same with adding things into photos. Both generating them and blending them in.

What evidence do you see indicating that the 20/month is actually profitable? You make the claim, but you have not backed it up.

They could easily be eating a loss on GPT+ and the GPT4 AI. They have billions in runway to do that. I have not seen any reports about their expenses or profitability. Perhaps you can link me to some hard facts.

Until I see real reason to think otherwise, I'll assume there is a reasonable risk of a price hike

Right now they could hike prices, and I'd have nowhere else to go, because nothing else competes with GPT4.

Anthropic’s Claude Opus gives GPT4 a run for its money.