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Open AI doesn’t have any meaningful “products” they have good technology and they charge $20 a month for a subscription to a technology demo that doesn’t come c
by scarface_74 3y ago
Open AI doesn’t have any meaningful “products” they have good technology and they charge $20 a month for a subscription to a technology demo that doesn’t come close to covering their costs.
You think the employees at “Open” AI care about anything more than their large paychecks no matter what they say?
- a_bonobo 3y agoIt is implied in OP's reply too, right? No word about 'hey we're giving powerful tech to a hyper-monopolist', it's only about your friends and the money
- lumost 3y agoI’d be curious if $20/mo is or is not enough to cover their costs. It’s opaque what their inference setup is, or what the final economics of LLMs will be. With 30-100 Billion param models becoming available which are in spitting distance of gpt-4, and dedicated ASIC implementations… openAI might be charging too much.
- scarface_74 3y agoAre you taking into account they are also paying far below market costs for compute or even what a large customer could negotiate?
- Grimblewald 3y agoSo because their costs are lower than that of competitors, customers should pay more? Ok.
- scarface_74 3y agoThere costs are lower…for now. Do you think Microsoft is going to subsidize them forever?
- lumost 3y agoGPUs will be cheaper later. GPUs have still been tracking Moore's law, enterprise GPUs went from a niche product to being the hottest enterprise hardware overnight. Margins on H200's are massive from what I understand. I would bet that we'll see massive competition in the hardware space from AMD, NVDA, MSFT, AMZN, and GOOG + startups. We're likely to see an 8-16x reduction in hardware costs over the next decade. That's about enough to shrink the current GPT-4 inference endpoints to a laptop/desktop sized hardware footprint.
- PeterStuer 3y agoCan you provide a source for this? Since it is MS providing the compute for equity, they would not have an incentive to discount.
- zombiwoof 3y ago* this * notice how the one OpenAI employee posted he'd "consider it" if the comp was right. Ie, it's about the money.
- andrewjf 3y agoYep. Someone is going to get the money, I’d like it to be the employees.