AI’s Steep Costs Are Already Triggering Competition Concerns

As artificial intelligence tools like ChatGPT surge in popularity, companies are facing a tricky dilemma: Some of the tech industry’s most ambitious products stand to lose money due to the massive costs to run them, my colleague Will Oremus reported Monday.

Daniel Castro, vice president at the Information Technology and Innovation Foundation think tank, said there’s been a stream of entrants into new AI markets in recent months.

“Again and again we’re seeing new products being brought to market, so it doesn’t seem like there’s any kind of, you know, talent restriction … bottleneck or funding bottleneck, or computational bottleneck,” said Castro, whose group receives funding from tech companies such as Microsoft and Amazon and philanthropic groups. (Amazon founder Jeff Bezos owns The Washington Post.)