Emmanuel Mwangi

Emmanuel Mwangi

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Jake Friedberg•

2mo ago

Is usage-based pricing becoming the norm for AI tools?

Hey everyone,

I've built my product around traditional SaaS pricing (monthly tiers), but I m starting to wonder if that model is getting outdated, especially with more AI-powered and compute-heavy tools entering the market.
That shift requires real architectural changes, instrumentation, metering, billing logic, and UI changes, not just pricing tweaks. It s something I m starting to seriously think about for my own product.

In particular, AI usage has real COGs (every prompt costs money), and I m seeing more platforms experimenting with usage-based models, or hybrids like SaaS base + usage + overage.

For those of you building AI or compute-intensive tools:

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