Zhang's startup, Decagon, remains secretive about overall profitability, highlighting the significance of a $100 million venture capital funding from notable investors. This allows the company to prioritize growth, suggesting a longer-term strategy. Erica Brescia from Redpoint Ventures critiques current AI pricing, believing it undervalues the offerings, citing Google's $250 plan as too cheap. Reflecting on her experience with GitHub's Copilot, she notes that while initial low pricing attracted a user base, the current value suggests a much higher price could be justified for similar AI tools, advocating for a reevaluation of pricing strategies in the sector.
Zhang emphasizes that his company profits from individual conversations, yet refrains from disclosing overall profitability, indicating a focus on growth through a $100 million investment.
Erica Brescia expresses surprise at the low AI pricing, calling it "disproportionate to the value people are getting," highlighting a potential market misvaluation.
Brescia reflects on GitHub's strategic pricing for Copilot, which attracted users despite early losses, emphasizing data gathering over immediate profitability.
GitHub continues to prioritize democratizing access over high profits, as noted by COO Kyle Daigle, while the value of their product suggests higher pricing could be warranted.
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