3 ms·
Even if the inference is getting cheaper, all the frontier companies are running massive losses building and serving it. That has to come back eventually, that
by CuriouslyC 2y ago
Even if the inference is getting cheaper, all the frontier companies are running massive losses building and serving it. That has to come back eventually, that's just how capitalism works.
Just remember that Netflix didn't start really jacking up the price till after the other players entered the streaming war, when they were pioneers it was dirt cheap. The existence of Disney+ didn't stop them at all.
- InsideOutSanta 2y agoOne major difference is that Netflix has a monopoly on much of its content, but LLMs are fungible. Dell was never able to jack up its prices, even when it was dominant in the market, because people would just go to another vendor. I think OpenAI is closer to a Dell than a Netflix.
- pzo 2y agoif new models won't require to have significantly better hardware then I think eventually many cases will be run on locally. Currently you have macbook pro with even 128GB RAM - of course almost nobody has it but those hardware will be mainstream common in ~5 years. You already can have ollama - you just need to have equivalent preinstalled by Microsoft/Apple/Google on their all new devices - again most likely this will happen in <5 years.
- KeplerBoy 2y agoHaha, maybe Gen AI needs will finally drive up memory needs and the memory installed in most device, but i doubt it. Apple still happily takes 1800$ for 8GB laptops. Wouldn't be surprised if that were their most sold SKU ans the laptops sold today will be around for quite some time.
- brookst 2y agoFixed costs vs variable costs. That’s how capitalism works.