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All these AI services are a great value for the money. I can’t believe that it’s profitable in any way. It seems to me anecdotally that once some market share i
by matt3210 2y ago
All these AI services are a great value for the money. I can’t believe that it’s profitable in any way. It seems to me anecdotally that once some market share is reached prices will skyrocket.
I don’t think the barrier to entry is big enough to make this scaling model suitable.
- minimaxir 2y ago> It seems to me anecdotally that once some market share is reached prices will skyrocket. Competition determines pricing, and all LLM providers have to compete with "free" open-source solutions. There is no moat to justify increasing costs. Some argue that having the best model is a moat (it's not by the economic definition), but even then, permissively-licensed OSS LLMs are catching up since there is a slowdown, and anyone can host them.
- toomuchtodo 2y agoThe market determines pricing, but if the cost of queries exceeds what they can collect in revenue, it is unsustainable. Is it similar to the VC driven craze where gig systems were super cheap until they weren't? Maybe! "It’s easy to sell dollar bills for ninety cents."