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If you're paying $200/month for something I can do with open source software and $10/month of compute, why wouldn't I offer you the service for $100/month? And

If you're paying $200/month for something I can do with open source software and $10/month of compute, why wouldn't I offer you the service for $100/month? And then someone offer it for $50? Not everyone has to know about, understand, or use open source solutions for it to open the field.

bobxmax 2y ago
If you can do a $200/mo service for $10/mo, the closed source will reduce their prices to $15/mo and beat you This is just a weird dichotomy you're introducing. Open source will introduce price pressure as any competition will - that doesn't mean you won't have a monopoly.
- dauhak 2y ago
  If you have virtually no pricing power and have to drop your $200/mo to $15/mo that's a big deal if your $300bn valuation is implying that not happening, which is what OP's point is about Idk what you mean by saying this doesn't preclude a monopoly - having your pricing power eroded by competition is kinda one of the key features of what a monopolistic market isn't
  - bobxmax 2y ago
    Not at all. Monopolies don't imply an anti-rigid price curve. In fact, monopolies almost never have that. A monopoly means a company has enough leverage to corner and disproportionately own the market. This is entirely possible (and usually the case) even with significant pricing pressure.
- gopher_space 2y ago
  I think you're both missing a bigger picture. How many of these services can now be replicated in-house by a single developer? Which part of the service actually costs money once that dev deconstructs the process? Feels like I won't be paying for anything that isn't real-time. And that any time delay I can introduce in my process will come with massive savings. Picture hiding the loading of loot info behind a treasure chest opening animation in a game, except that time difference means you can pull all the work in-house. Openrouter.ai seems like a step in the right direction but I'd want to do all their calculations myself as well as factor in local/existing gear in a way they don't.
Mekoloto 2y ago
Right now you can't run it that cheap at home. You need to pay energy bill, do the update/upgrade and you need to build a LLM rig. Nvidias Digits Project could be very interesting, but this box will cost 3k. We are a lot closer to running it at home than i assumed we would but plenty of people prefer SaaS over doing stuff themselves.

bobxmax 2y ago

If you can do a $200/mo service for $10/mo, the closed source will reduce their prices to $15/mo and beat you This is just a weird dichotomy you're introducing. Open source will introduce price pressure as any competition will - that doesn't mean you won't have a monopoly.

dauhak 2y ago
If you have virtually no pricing power and have to drop your $200/mo to $15/mo that's a big deal if your $300bn valuation is implying that not happening, which is what OP's point is about Idk what you mean by saying this doesn't preclude a monopoly - having your pricing power eroded by competition is kinda one of the key features of what a monopolistic market isn't
- bobxmax 2y ago
  Not at all. Monopolies don't imply an anti-rigid price curve. In fact, monopolies almost never have that. A monopoly means a company has enough leverage to corner and disproportionately own the market. This is entirely possible (and usually the case) even with significant pricing pressure.
gopher_space 2y ago
I think you're both missing a bigger picture. How many of these services can now be replicated in-house by a single developer? Which part of the service actually costs money once that dev deconstructs the process? Feels like I won't be paying for anything that isn't real-time. And that any time delay I can introduce in my process will come with massive savings. Picture hiding the loading of loot info behind a treasure chest opening animation in a game, except that time difference means you can pull all the work in-house. Openrouter.ai seems like a step in the right direction but I'd want to do all their calculations myself as well as factor in local/existing gear in a way they don't.

Mekoloto 2y ago

Right now you can't run it that cheap at home. You need to pay energy bill, do the update/upgrade and you need to build a LLM rig. Nvidias Digits Project could be very interesting, but this box will cost 3k. We are a lot closer to running it at home than i assumed we would but plenty of people prefer SaaS over doing stuff themselves.