Speaking during an interview on CNBC’s “Squawk on the Street” segment earlier this week, CEO of cybersecurity giant Palo Alto Networks Nikesh Arora implored the tech industry to lower the cost of AI.
During the segment, the chief executive argued that the cost to use large language models (LLMs) has to drop by 20 percent by 2027 — and 90 percent by 2028 — for the tech to be useful to enterprises.
“We need to see the pricing for AI come down,” Arora said.
The last 50 years has shown that the new model is to get a sector of the economy or consumers dependent on a service then once the competition has faded away, jack up the price. Competition either never shows up or collaborates on pricing.