The 21 Hats Morning Report

The 21 Hats Morning Report

You’re Going to Have to Pay More for AI

Somebody has to pay for what has likely been the most expensive corporate build out in history.

Loren Feldman's avatar
Loren Feldman
May 04, 2026
∙ Paid

Good morning!

Here are today’s highlights:

  • Maryland has become the first state to ban dynamic pricing.

  • In Colorado, business leaders are demanding an overhaul of the state’s regulatory regime.

  • Some business owners could really use a tariff refund but don’t have the bandwidth to figure out the portal.

  • A dairy farmer decides to shut down a family farm that has been operating since before the Civil War.

ARTIFICIAL INTELLIGENCE

Now that many of us are hooked, AI is about to get a lot more expensive: “Big Tech told investors this week it will spend roughly $700 billion on AI infrastructure in 2026, likely the largest corporate buildout in history. The market mostly celebrated. Investors may be cheering the shift underneath, not just the spending. After years of free tiers, flat-rate enterprise contracts, and venture capital absorbing the difference, the industry is renegotiating its unit economics. Customers are about to feel it.”

  • “Microsoft GitHub Copilot will move on June 1 from a flat-rate coding-assistant model toward usage-based billing tied to tokens, which are the units of data (usually a few characters of text) processed by AI.”

  • “The change ends what was effectively all-you-can-eat AI-assisted coding. Anthropic shifted enterprise customers to per-seat plans with usage billed on top, and last month cut off third-party tools that were running $200-a-month consumer subscriptions through autonomous AI agents around the clock, consuming thousands of dollars in compute.”

  • “OpenAI’s head of ChatGPT has said publicly that unlimited AI plans probably no longer make sense. The company is charging more for its newest model but hasn’t restructured enterprise pricing the way Anthropic has.” READ MORE

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