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> But while Facebook’s costs decreased as it scaled, OpenAI’s costs are growing in lockstep with its revenue, and sometimes faster And here comes DeepSeek and
by trhway 2y ago
> But while Facebook’s costs decreased as it scaled, OpenAI’s costs are growing in lockstep with its revenue, and sometimes faster
And here comes DeepSeek and takes the steam out of this and the cost arguments that follow it.
- croes 2y agoUntil now we know only what the they claim what that costs are.
- trhway 2y agoWhat DS did is in line with my expectations as I see a lot of performance optimizations possible at algorithmic level. So, even if the DS numbers are BS somebody else will tomorrow reach and even beat it.
- diego_sandoval 2y agoInference costs can't be faked though, since the model can be run locally by anyone with capable hardware. Even if the whole story about the training cost was fake, R1 and the distilled models are still very efficient at inference.
- nextworddev 2y agounless OAI has all the optimization tricks already, which they probably do
- croes 2y agoThe shock for the industry was the claimed training costs and used hardware.
- creato 2y agoIs the model architecture actually that different from anything else? Or are you just saying that you can get away with smaller models now?
- deleted 2y ago[deleted]
- PKop 2y agoIsn't that argument that after all the spending by OpenAI, an upstart derived from their investment a cheaper but similarly capable alternative? Where's the profitability in the equation coming from? Now there's another supplier to match the (potential?) consumer or corporate demand that's diffused among more competitors, and open source.
- dralley 2y agoIt's lose-lose for their valuation regardless. This scenario might if anything be worse for them. Now they have massive sunk capital investments that the second mover might be able to avoid. If the open source models get small enough and high enough quality, the rationale for runing them in the cloud in the first place start to evaporate. How does OpenAI get paid for a use case that can easily be run locally on an iPhone?
- azinman2 2y agoBecause they deliver models you cannot run locally on an iPhone, and those are almost always the models you want to run.