Cheap AI is killing AI companies. That's the point.
AI costs have dropped sharply, threatening companies that rely on expensive models while enabling local firms to build value-added workflows in Thailand.Summary
Since 2023 the price of a standard AI unit has fallen from about $60 to roughly $1, a 60‑fold reduction that has made the technology cheap enough for widespread use. Thailand, which ranked 89th in AI adoption, now faces a market where the raw engine is inexpensive, but the real value lies in the workflows that integrate the engine into local business processes such as accounting, logistics, and healthcare.
Companies that built their competitive advantage solely on owning the expensive engine—such as early‑stage startups that priced themselves on the cost of the model—have struggled as the price curve collapses. In contrast, firms that combine the cheap engine with domain‑specific workflows, like the Thai‑focused tools Cursor and Harvey, can capture higher margins by embedding AI into everyday operations. For Thai founders, the opportunity is to specialize locally rather than compete with global model labs, while buyers must evaluate vendors based on how well the AI integrates with their existing systems rather than on the novelty of the model.
(Source：Nation Thailand)
