> The problem is that users pay $10 a month subscription fee for Copilot but, according to a source interviewed by the Journal, Microsoft lost an average of $20 per user during the first few months of this year. Some users cost the company an average loss of over $80 per month, the source told the paper.
Yeah, so far this looks like home assistants which are all money-losing. There isn't yet a killer app, like google ads/search, which is sticky and pervasive and where an effective monopoly emerges.
Home assistants have no per-month cost to the customer, so introducing one would be a deal breaker for many users. Copilot is already a paid service, so it's easier to increase the prices if needed. The ongoing compute costs will also drop in a Moore's Law-like way
Copilot sends huge prompts continuously since it includes adjacent files for context. That's why it's so good at "figuring out" your own esoteric code.
this is not a strong counter argument. Costs will come down.
When there is insanely high demand for a product (like there is here) and the thing makes people more productive, costs always come down due to pure incentives to make it cheaper.
This happened with electricity, the car, air travel, solar power, etc etc
Because presumably the goal of copilot is not to make substantial amounts of money at this time, but instead to produce tons of training data for the tools that come after (and are significantly more profitable, because they reduce the amount of money firms spend on software developers.)
