I agree with this analysis that fixed-fee AI subscriptions can't work.
- I agree with this analysis that fixed-fee AI subscriptions can't work.
- The marginal cost is too high, and the value created by them is too high for users to ration their usage.
From other episodes
- The time to reflect and write what you learned gives compounding momentum.2026-03-30
- The current subscription model works because usage is variable.2026-03-17
- This week I heard about a software consulting company struggling with agentic engineering.2026-03-09
- ATProto is an interesting new ecosystem.2026-01-26
- LLM marginal cost will stay high even as token cost declines.2026-01-26
- I continue to think the best business parallel for LLM model providers is cell phone networks.2025-08-11
- Stable business models require that where the cost and the value accrues are aligned.2025-08-04
- Remember the fight against DRM?2025-08-04