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It’s both. For an increasing number of tasks, it’s too cheap. People will be able to do simple things on their own hardware. Things OpenAI would love to charge
by janalsncm 2y ago
It’s both. For an increasing number of tasks, it’s too cheap. People will be able to do simple things on their own hardware. Things OpenAI would love to charge high margins on. There’s probably an 80/20 rule on the horizon.
And for others, it’s too expensive. The frontier is constantly being pushed, so they can’t stop improving or they will fall behind. Google at least makes their own chips so they can control their costs somewhat.
- disgruntledphd2 2y agoHonestly, it's the training costs that will kill them. AFAIK, training costs have not come down anywhere near as much as inference costs. And the models don't last long. So you have a rapidly depreciating capital asset that you need to provide your services, not really a recipe for a sustainable business (certainly not with the fat software margins tech companies are used to).
- nearbuy 2y agoSo you suspect their cheap models have few customers because people prefer to run open source models on their own computers, and their high-end models have either very thin margins over the inference cost or few customers because the costs are too high. Do you have any evidence for any of this?