The Ugly Economics of Consumer AI
Muse, Dots and Instinct made consumer AI look hot again, but payment data says only 2% to 3% of US households pay for AI while a Menlo survey says 55% of users do. We reconcile the sources, correct a Netflix comparison that does not add up, explain why running costs are the real problem and compare how Meta, OpenAI, Instinct and Anthropic plan to make money.
