Artificial intelligence is getting expensive ¡ª and companies are starting to rethink their embrace of the disruptive technology.

Playing by a well-worn Silicon Valley playbook, AI companies charged rock-bottom prices to hook customers after ChatGPT burst onto the scene.

Kevin Simback of startup incubator Delphi Labs calls it the era of ¡°subsidized intelligence¡± ¡ª meaning investors were basically footing the bill so companies could offer AI on the cheap.