For AI users, this frenzy is a gift. Competition has meant that the models improve rapidly and their prices stay low. There is no reason not to use these products while they are free or almost free.
I fully agree and get lots of value from my 20$ Claude subscription, mostly via ClaudeCode. More on that later, but I am happy to take investors' money by buying a product that is sold under break-even price. May it last as long as possible. But to continue the quote:
For AI investors, the economics are unforgiving. Better chips make models faster—and make yesterday’s chips worthless. Every leap forward accelerates depreciation on the collateral lenders are asked to finance. That is why banks refuse to lend, they prefer assets that last longer than a news cycle.