We already have some information about how Jesse Lyu's company is going to make money

The Rabbit R1 is sold as an extraordinarily cheap device —around €200, shipping to Spain included—, without subscription and, apparently, without additional costs in the future. This competitive pricing makes it an attractive option compared to other machine learning devices on the market, which tend to have higher prices and often require monthly or annual subscriptions.

Rabbit Inc's strategy

The low pricing strategy may be an effort to quickly attract a broad and diverse user base, crucial for learning and continuous improvement of the AI-based system. On the other hand, according to what little we have been able to see, The possibilities are enormous and the future projects seem infinite.. The key point of your operating system is based on "The learning", and the ability to teach your R1 how to act.

This personalized learning feature allows the device to adapt to the user's individual needs and preferences, which could revolutionize the way we interact with technology. This customization capability not only improves the user experience, but also opens new avenues for applications in education, entertainment, and personal assistance.

Your plan to make money

One of the unknowns that most worried me since the release of this Rabbit R1 was its business model. How do they plan to make a profit with such a low price and a non-subscription based model? How do you support the expenses just by selling the hardware? This question is crucial to understanding the long-term sustainability of the project.

In the technology world, many initial products are offered at low prices to attract customers, but then depend on recurring revenue from additional services, upgrades or accessories. The Rabbit R1 approach challenges this norm and suggests an innovative strategy or alternative business model.

They seemed quite reserved about this topic. Although there is little information in Spanish about the Rabbit R1, there does not seem to be much more information on English-language channels, such as Discord or YouTube. This could indicate that they are still exploring various monetization options. In the startup world, it is common for startups to adjust their business model as they scale and learn more about their users.

The interview with Jason Calacanis

In an interview on the “This Week in Startups” channel I found the answer., after addressing other topics such as data collection or collaboration with Teenage Engineering. And the strategy is quite original and seems like an excellent decision.

The collaboration with Teenage Engineering, known for their innovation in electronics design, suggests that Rabbit R1 could be focused not only on functionality, but also on a distinctive and attractive design. Data collection, a hot topic in modern technology, also raises questions about how Rabbit R1 will handle the privacy and security of user data.

As I mention, the support of the LAM and, therefore, of the R1 will be based on learning. Some videos show how, through a type of "screen recorder", you can teach your Rabbit to interact with different websites or applications to perform specific actions, such as sending a message, ordering an Uber or calling to order pizzas.

This functionality has enormous potential, especially in the era of automation and personalized assistance. It could, for example, be particularly useful for people with disabilities, simplifying interaction with technology and assisting with daily tasks.

The Rabbit OS business model will work with personalized teaching, created by platforms or individual users, which R1 will use to execute tasks. There will be a kind of "App Store" with detailed instructions available for purchase, allowing users to teach their Rabbit to act by imitation, saving time for those who do not want or do not know how to teach the operating system.

This approach could create a new economy around creating and selling these “teachings,” similar to how developers create and sell apps in mobile app stores. It could become a vibrant and self-sustaining market.

In the interview, Jesse Lyu mentions two interesting points: They have an investor who has contributed 10 million dollars to the project, and, although the interviewer interrupts before he can elaborate, it seems that They are not focused on generating income at the moment, but in product development and building a solid and broad user base. This capital injection suggests strong support and confidence in the project, which is essential for a startup in its early stages.

The decision to focus on development and the user base rather than generating immediate revenue is a common strategy in the technology industry, where many companies focus first on building a strong user base and then look for ways to monetize .

We will see how the idea develops, if the objective is achieved and if the user base is large enough for it to work optimally.