3 ms·

I agree Nvidia is for sure making money. For the other companies in your list and more specifically the ones that are developing LLM's they are investing billi

• fnordpiglet 2y ago
  Note I didn’t discuss the fully loaded costs I discussed the inference costs. At this point I see training costs as basic research and R&D, partially and not entirely oriented at -making training scale- and cost optimization for next generations of foundational and fine tuned models. For example Falcon is literally basic research funding. That’s relevant because if they stopped with say Claude Opus and 4o and did no more training they would be handsomely profitable indefinitely because the product is that useful. However it’s an arms race and the limit of effectiveness hasn’t been reached as training costs fall dramatically. So it’s not the right time to stop because whoever stops first loses everything to whoever doesn’t stop. More they’re feeding off each other in a virtuous cycle. Once diminishing returns kill the race whoever is left in the race will have a handsome business indefinitely as the moat to build such a return diminished model is probably enormous. But if inference optimizations keep going as they’re going it’ll be crazy cheap to operate. The second layer market of tools that constrain, optimize, and effectively apply the models in effective ways will be the first to really turn a profit. Many hype wagon AI companies are already being snapped up by larger companies to bootstrap their internal work.
  • victor106 2y ago
    good points, thank you