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Why are AI providers lowering prices as usage grows?

Original: Why are AI providers lowering prices even as usage expands?

The question of why AI providers are cutting prices even as demand for their services surges is drawing attention across the tech industry. In most markets, expanding usage would push prices up, so the reverse trend is notable. Possible explanations being weighed include intense competition among providers, falling infrastructure and inference costs, and aggressive efforts to win developers and enterprise customers before rivals lock them in.

Why now: Price cuts amid booming demand defy normal market expectations, prompting debate about competition and cost trends in the AI sector.

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