4 ms·

- Price race to the bottom with near-instant LLM responses at very low prices are on the horizon Maybe a big price war while the market majors fight out for po

- Price race to the bottom with near-instant LLM responses at very low prices are on the horizon Maybe a big price war while the market majors fight out for positioning but they still need to make money off their investments so someone is going to have to raise prices at some point and youll be locked into their system if you build on it.

Havoc 2y ago
>locked into their system There are going to be loads of providers for these open models. Openrouter already has 3 providers for the new 405B model within hours.
- boringg 2y ago
  Maybe for the time being. I don't see how else they monetize the incredible amount the spent on the models without forcing people to lock into models or benefits or something else. It's not going to stay like this I can assure you that :).
  - Havoc 2y ago
    Not sure whether you mean by that post open router serving the 405b or meta producing more. Open router is a paid api so that can absolutely be sustainable. And meta has multiple reasons for going open route - some explained in their posts so less so (harms their competitors) I reckon there will be a llama 4 and beyond
  - tim333 2y ago
    Meta will make money like it has in the past by having data about users and advertising to them. Commoditizing AI helps them keep at that. See Joel on Software "Smart companies try to commoditize their products’ complements" https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/ https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/
wavemode 2y ago
> they still need to make money off their investments Depends on how you define this. Most of the top companies don't care as much about making a profit off of AI inference itself, if the existence of the -feature- of AI inference drives more usage and/or sales of their other products (phones, computers, operating systems, etc.) That's why, for example, Google and Bing searches automatically perform LLM inference at no cost to the user.

Havoc 2y ago

>locked into their system There are going to be loads of providers for these open models. Openrouter already has 3 providers for the new 405B model within hours.

boringg 2y ago
Maybe for the time being. I don't see how else they monetize the incredible amount the spent on the models without forcing people to lock into models or benefits or something else. It's not going to stay like this I can assure you that :).
- Havoc 2y ago
  Not sure whether you mean by that post open router serving the 405b or meta producing more. Open router is a paid api so that can absolutely be sustainable. And meta has multiple reasons for going open route - some explained in their posts so less so (harms their competitors) I reckon there will be a llama 4 and beyond
- tim333 2y ago
  Meta will make money like it has in the past by having data about users and advertising to them. Commoditizing AI helps them keep at that. See Joel on Software "Smart companies try to commoditize their products’ complements" https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/ https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/

wavemode 2y ago

> they still need to make money off their investments Depends on how you define this. Most of the top companies don't care as much about making a profit off of AI inference itself, if the existence of the -feature- of AI inference drives more usage and/or sales of their other products (phones, computers, operating systems, etc.) That's why, for example, Google and Bing searches automatically perform LLM inference at no cost to the user.