The marginal cost of AI is not 0. That's one of the big differences between this and older SaaS software. Inference costs a lot of money. Even if you're looking at just capital depreciation, it's quite expensive. I suppose it's more accurate to say marginal cost is stepwise - adding 1 new user is 0 cost if and only if your existing inference hardware covers that user's usage. As soon as you need a new server, adding _that_ new user costs ~$20k/year (assuming 100k server and 5 year depreciation).

This is true for traditional SaaS too, but the number of concurrent users that could be served by one machine and the cost of the hardware were both at least an order of magnitude better.

>They're not going to lose on price. No consumer software ever has

Lists examples of software that are free to the users

Exactly the CC sessions flywheel is a treasure trove of data and they all know that. The reason we went to stackoverflow was because there was data (upvotes/downvotes, comments, workarounds) discussed under the answers. That is a very high quality signal from the field.