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The cost of what? Training a model or trained a served model? The cost of both benefit from economies of scale. If I had what openAI has I could imagine how to
by neom 2y ago
The cost of what? Training a model or trained a served model? The cost of both benefit from economies of scale. If I had what openAI has I could imagine how to make it profitable tomorrow, because I could do that is why they HAVE to make it free without an account, to prevent anyone new from meaningfully entering the $0 to $20mth segment, they already know nobody can compete with the most advanced model.
If you look at their business strategy, it's top notch, anchor pricing on the 200, 20 sweet spot, probably costs them on average $5/mth to server the $20/mth customers, Take your $50m a year marketing budget and use it to buy servers, run a highly optimized "good enough" model that is basically just wikipedia in chatbot and you don't need to spend a dime on marketing if you don't want to, amazing top of funnel to the rest of your product line. I believe Sam when he says they're losing money on the $200/mth product, but it makes the $20/mth product look so good...
They're really playing business very well.