The AI Pricing Mistake That Bankrupts Startups

Most AI startups price their features like they’re selling software. They’re not. Learn the fatal pricing mistake that kills startups: pricing based on theoretical usage instead of actual customer behavior. When users actually deploy your AI, costs spike. Usage balloons. Unit economics break. In this video, Mahesh walks through: - Why your average-case model is wrong - What happens when real customers use your AI - How three startups had to rebuild their pricing mid-launch - The one number that actually matters: worst-case user cost The fix is simple. The math is brutal. Most founders miss it until it’s too late. This is part of the Agentic AI (Zero to Hero) series, covering the PM decisions that make or break AI products.