I wonder how the business model of LLMs will evolve. Currently, they are costly to run, and most (all?) operators are losing money on them.

Some apps (like Notion) are charging extra for LLM features, which makes it much less appealing for B2C customers. Cost won’t be as much of an issue for enterprises, but that’s where data confidentiality becomes an issue.

That leaves small-ish businesses as the target market, but the scaling ambitions of LLM providers won’t be fulfilled just within that segment.

So, outside of an order-of-magnitude improvement in efficiency, what does the profitability story look like here?