Finally, there are positive economic externalities to public AI availability.
There are positive economic externalities to public everything availability. We don't live in this kind of world though, someone will always try to claim a larger share due to human nature. That being said, I'm not really interested in arguing about the political feasibility (or lack thereof) of having every resource being public.
With how many people are already using AI, it’s frankly mind boggling that they’re only losing $700k a day.
There are significant throttles in place for people who are using LLMs (at least GPT-based ones), and there's also a cost people pay to use these LLMs. Sure you can go use ChatGPT for free, but the APIs cost real money, they aren't free to use. What you're seeing is the money they lost after all the money they made as well.
You’re also ignoring the fact that costs don’t scale proportionally with usage. Infrastructure and labor can be amortized over a greater user base. And these services will get cheaper to run per capita as time goes on and technology improves.
I don't disagree that the services will get cheaper and that costs don't scale proportionally. You're most likely right - generally speaking, that's the case. What you're missing though is that there is an extreme shortage of components. Scaling in this manner only works if you actually have the means to scale. As things stand, companies are struggling to get their hands on the GPUs needed for inference.