Freemium models have been a staple in the tech industry, allowing users to access basic features for free while charging for premium functionalities. With the rise of large language models (LLMs), some companies are leaning towards locking AI features behind paywalls, reminiscent of the SaaS model from nearly a decade ago. This shift raises concerns about the viability of freemium strategies in an age where operating costs for AI can be high. However, the author argues that freemium isn't dead, especially in the context of AI. Despite the costs associated with LLMs, offering a freemium model remains a strategic choice. Users are drawn to free offerings, which can drive engagement and build a user base. By providing essential functionalities for free, companies can establish a loyal following before monetizing advanced features. This creates a balance where companies can sustain themselves financially while still attracting users who may eventually convert to paid plans. In summary, the freemium model, particularly for AI products, remains relevant. Companies that recognize the value of this approach can thrive by leveraging user engagement and gradually introducing premium offerings. The author emphasizes that as long as freemium provides real value, it will continue to be a powerful strategy, even in a landscape dominated by costly AI technologies.