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How in the world are they going to make money on this? Perhaps the hardware is cheap to manufacture, but with no subscription I feel like they are going to get
by josephwegner 3y ago
How in the world are they going to make money on this? Perhaps the hardware is cheap to manufacture, but with no subscription I feel like they are going to get taken to the cleaner on LLM API fees. Even if they're running the LLM themselves, it's not cheap. Could they really be getting enough margin on the device to pay their staff _and_ all of that infra?
Or maybe this is another VC-backed sale price :)
- nwoli 3y agoI figured it’s local llms on the device
- whywhywhywhy 3y agoIt's not powerful enough for that, 2018 chipset -> https://news.ycombinator.com/item?id=38938330 https://news.ycombinator.com/item?id=38938330 "No subscription" definitely sounds good to get people in the door but it seems short sighted in the long run, can't be making much on $200 and the more it's used the more that margin is eaten. Presumably they will roll out a sub at some point for extra features but then you get the backlash of "You said no subscription".
- radicalbyte 3y agoLoss leader and data collection play? EDIT: it's 100% the razor model, they want the device out there so they own your interaction with "service providers"; i.e. they take a cut of everything to do. Middle men.
- diebeforei485 3y agoPresumably the optional data sim plans. It's not much different than Sony selling PlayStations at a low price but making money off the games.