Introduction to Free AI Services
Airtel and Google are giving away premium AI services worth thousands of rupees for free to their users. Airtel is offering Perplexity Pro subscriptions worth ₹17,000 per year, while Google is providing Gemini AI Pro worth ₹19,500 for free to Indian students. These companies are not just being generous; there’s a calculated strategy behind these free services.
The Real Reason Behind Free AI Services
These companies are not trying to sell AI models; they’re trying to become the foundation that everything else gets built on top of. They want to create a platform that every other company has to use for AI features. This is similar to how Apple and Google dominated the mobile phone industry by controlling the platform. The same thing is happening with AI, where companies like OpenAI, Microsoft, and Google are competing to become the platform that every other company uses for AI.
AI Models Are Going to Get Commoditized
Sam Altman, the CEO of OpenAI, said that having a billion people using your platform every day is more valuable than having the best AI model. AI models are going to get commoditized, and in a few years, there will be dozens of really good AI models that are all pretty similar. However, if you have a billion people who are used to coming to your platform for AI help, that’s incredibly valuable. This is why companies like Airtel and Google are giving away free AI services to build a massive user base.
Collecting Data on How People Interact with AI
Every time you use free AI services, you’re training them. Your conversations, questions, and interactions with the AI become data that makes the AI better. This data is valuable because it helps the company improve its AI services and create a snowball effect. The more people use their AI, the better it gets, and the more people use it. This creates a competitive advantage that’s hard to replicate.
How Can These Companies Afford to Give Away Such Expensive Services?
These companies are not actually giving away expensive services; they’re giving away what feels expensive to us, but costs them much less than we think. They’ve gotten really good at making AI cheaper to run, and they’re not trying to make money directly from the free AI services. Instead, they’re trying to make money from everything else that comes after, such as enterprise sales.
Giving Away AI Services for Free Is Marketing for Enterprise Sales
The free consumer AI services are basically marketing for enterprise sales. If you’re a business and you want to use AI for your company, you’re going to go with the AI provider that you and your employees already know and trust. This is why companies like Airtel and Google are giving away free AI services to consumers; they’re trying to win enterprise customers.
Defensive Strategy
There’s also a defensive element to giving away free AI services. Companies like Google and Microsoft dominate certain markets, such as search and productivity software. However, AI could change how people find information and work, threatening their dominant position. By offering free AI services, they’re trying to prevent themselves from losing their incredibly profitable businesses.
The Psychological Difference Between Free and Cheap
The psychological difference between free and cheap is huge. When something is free, people don’t hesitate to try it out. This eliminates all the friction that would prevent people from using the service. Once you start using something regularly, it becomes part of your routine, and you develop preferences and habits. This makes it much harder to switch to a competitor later.
The Future of AI
These companies are betting on what the world will look like in five or ten years. AI is going to become integrated into everything we do, just like the internet did. Whoever controls the underlying AI platform will be incredibly powerful. By getting people used to their AI services now, these companies are positioning themselves to be the infrastructure that powers that AI-integrated future.
Conclusion
In conclusion, companies like Airtel and Google are giving away free AI services as a calculated strategy to become the platform that everything else gets built on top of. They’re trying to create a massive user base, collect data on how people interact with AI, and win enterprise customers. This is a defensive strategy to prevent themselves from losing their dominant position in certain markets. The psychological difference between free and cheap is huge, and these companies are positioning themselves for the future of AI.
FAQs
- Q: Why are companies like Airtel and Google giving away free AI services?
A: They’re trying to become the platform that everything else gets built on top of, create a massive user base, and win enterprise customers. - Q: What’s the value of the data collected from free AI services?
A: The data is valuable because it helps the company improve its AI services and create a competitive advantage. - Q: How can these companies afford to give away such expensive services?
A: They’re not actually giving away expensive services; they’re giving away what feels expensive to us, but costs them much less than we think. - Q: What’s the future of AI, and how will it impact these companies?
A: AI is going to become integrated into everything we do, and whoever controls the underlying AI platform will be incredibly powerful. These companies are positioning themselves to be the infrastructure that powers that AI-integrated future.
