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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.