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This reasoning about the subscription price etc is undermined by the actual prices OpenAI are charging - The price of a model capable of 4o mini level performa

This reasoning about the subscription price etc is undermined by the actual prices OpenAI are charging - The price of a model capable of 4o mini level performance used to be 100x higher. Yes, literally 100x. The original "davinci model" (and I paid $5 figures for using it throughout 2021-2022) cost $0.06/1k tokens. So it's not inverting in running costs (which are the thing that will kill a company). Struggling with training costs (which is where you correctly identify OpenAI is spending) will stop growth perhaps, but won't kill you if you have to pull the plug. I suspect subscription prices are based on market capture and perceived customer value, plus plans for training, not running costs.

ToucanLoucan 2y ago
> So it's not inverting in running costs (which are the thing that will kill a company). Struggling with training costs (which is where you correctly identify OpenAI is spending) will stop growth perhaps, but won't kill you if you have to pull the plug. I don’t think it’s that cut and dried though. Many users run into similar issues as other issues with things like reasoning (which is (allegedly) being addressed) and hallucinations (less so) both of which in turn become core reasons for subsequent better versions of the tech. Whether the subsequent versions deliver on those promises is irrelevant (though they often don’t) to that, at least IMHO, being a core reason to “stay on board” with the product. I have to think if they announced tomorrow they couldn’t afford to train the next one that there would be a pretty substantial attrition of paying users, which then makes it even harder to resume training in the future, no?