So to anyone who doesn't know the venture capitalist investment side of AI: All the AI queries from people are kind of expensive as hell. Right now, even with most of the paid for use AI subscriptions many companies have paid for they're operating at well over an 80% loss. AI is expensive. The game plan has been to keep dumping money into the very net negative revenue stream of AI long enough in order to get corporations, doctors clinics, law offices, software companies, etc so imbedded into using AI that they'll be forced into absorbing the costs, even at a 10 fold price increase.
That's the plan. Increase the price by 10 fold over the course of the next several years. It will also push out any smaller businesses from being able to afford to use AI, and stop regular people from having free or low cost AI. It will all be consolidated and expensive, and prevent any new startups in industries that would benefit from AI to afford to get started.
I don't think that's the plan and it won't work if it is, believe it or not I think these corporate soul suckers know that.
Chinese models are literally 75x cheaper than frointer usa models with 85% of the capabilities. Chinese's models have continually been 3 - 6 months behind frointer models. This will continue to be the case and since Chinese models are generally open anyone with a big server can run them and sell tokens, it's gonna stay cheap.
I'm pretty sure most LLM providers are making enough money to profit on selling infrence. They only are in the negative from massive spending on hiring the best talent and research/development into new models and the associated hardware/data center build outs to train those new models.
The truth in my opinion is these companies are confident that if they spend enough they will reach a critical threshold where llms are actually intelligent and useful, and that is what they are betting on. Being the first company to make real "Ai" that can self improve.
I'm sure OpenAI and Anthropic will try to charge more because they are soul sucking capitalists but that will only be viable as long as they are sufficiently in the lead from open weight models. I think Anthroptic has already 2x api pricing for their newest hype beast end of the world its so scary advanced Fable 5 model.
I'm not gonna go back and forth with you in this one. It doesn't look like you've kept up with this, or been around long enough to see that the exact same strategy has happened several times. It isn't a new strategy. It's one tried and true. You'll see for yourself within 3 years time.
So to anyone who doesn't know the venture capitalist investment side of AI: All the AI queries from people are kind of expensive as hell. Right now, even with most of the paid for use AI subscriptions many companies have paid for they're operating at well over an 80% loss. AI is expensive. The game plan has been to keep dumping money into the very net negative revenue stream of AI long enough in order to get corporations, doctors clinics, law offices, software companies, etc so imbedded into using AI that they'll be forced into absorbing the costs, even at a 10 fold price increase.
That's the plan. Increase the price by 10 fold over the course of the next several years. It will also push out any smaller businesses from being able to afford to use AI, and stop regular people from having free or low cost AI. It will all be consolidated and expensive, and prevent any new startups in industries that would benefit from AI to afford to get started.
A cess pool.
I don't think that's the plan and it won't work if it is, believe it or not I think these corporate soul suckers know that.
Chinese models are literally 75x cheaper than frointer usa models with 85% of the capabilities. Chinese's models have continually been 3 - 6 months behind frointer models. This will continue to be the case and since Chinese models are generally open anyone with a big server can run them and sell tokens, it's gonna stay cheap.
I'm pretty sure most LLM providers are making enough money to profit on selling infrence. They only are in the negative from massive spending on hiring the best talent and research/development into new models and the associated hardware/data center build outs to train those new models.
The truth in my opinion is these companies are confident that if they spend enough they will reach a critical threshold where llms are actually intelligent and useful, and that is what they are betting on. Being the first company to make real "Ai" that can self improve.
I'm sure OpenAI and Anthropic will try to charge more because they are soul sucking capitalists but that will only be viable as long as they are sufficiently in the lead from open weight models. I think Anthroptic has already 2x api pricing for their newest hype beast end of the world its so scary advanced Fable 5 model.
I'm not gonna go back and forth with you in this one. It doesn't look like you've kept up with this, or been around long enough to see that the exact same strategy has happened several times. It isn't a new strategy. It's one tried and true. You'll see for yourself within 3 years time.