Might cost 50 cents to make the chip, but then you have to cover for all the development costs and packaging into a useful package that fits into a socket.

Add some profit on that in order to make the shareholders happy and to cover costs for the next generation and the $700 price tag might be a bit on the high side, but not horrible.

Add to it that not all the chips made are fully functional so there are some losses there too.

That IT department is today located in a low pay country and anyone that has worked there for more than 12 months is defined as Senior. Some of the people there are there just for a few weeks and don't know what icy roads are.

And all the new web app versions eats memory like a starved hog. 8GB isn't enough 640GB might be enough to solve your problems for this generation.

Latency is what kills the Office365 license check.

The license servers can't be reached from space in a timely manner. So the license has expired when the package reaches the spacecraft.

One AI to read the code and make the spec, then several other AIs to create a new AI.

Soon you'll see Daleks

The book Altered Carbon also uses this theme.

I foresee a new black market for ID cards or cloned debit cards that are used against an account with no money for the sole purpose of fake age verification.

Meanwhile scammers will now have a new path to hack into for their scams to drain your bank accounts.

I see that AI can find bugs that are tedious to find and only exists in corner cases that normal humans usually don't test. For every successful positive test case there can be a large number of negative cases with subvariants. That's where AI might be helpful - create all those test runs.
But to write code that's maintainable, with high performance and stable - that's a different thing.

Test code that doesn't work - just generate a new batch, it won't damage the product you deliver but it might have some flaws.

Hackers often utilizes corner cases when they breach into systems.