[unglaublich]

I don't understand this approach. How are you going to convince customers-to-be by demoing an inferior product?

[JV00]

Because they have too many free users that will always remain on the free plan, as they are the "default" LLM for people who don't care much, and that is a enormous cost. Also the capabilities of their paid tiers are well known to enough people that they can rely on word of mouth and don't need to demo to customers-to-be

[wooger]

They're not more default than people innocently googling something and getting an AI response from some form of Gemini.

[newswasboring]

Through hype. I am really into this new LLM stuff but the companies around this tech suck. Their current strategy is essentially media blitz, reminds me of the advertising of coca cola rather than a Apple IIe.

[fancyfredbot]

It's all trade offs. The router works most of the time so most free users get the expensive model when necessary.

They lost x% of customers and cut costs by y%. I bet y is lots bigger than x.

[deaux]

The good news for them is that all their competitors have the exact same issue, and it's unsolvable.

And to an extent holds for lots of SaaS products, even non-AI.