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You are describing a subsidy. If your kid makes $50 with a lemonade stand, she thinks she made $50, because she doesn't account for the cost of the lemonade, t
by Spooky23 1y ago
You are describing a subsidy.
If your kid makes $50 with a lemonade stand, she thinks she made $50, because she doesn't account for the cost of the lemonade, table, lawn, etc. You're subsidizing your child.
- simianwords 1y agoI agree its subsidised but crucial point being that each API doesn't cost them but gives them profit. If R&D were to be stopped now they would be profitable.
- 1718627440 1y agoNo it gives them income. Profit is when all costs are subtracted.
- simianwords 1y agoCorrect, I misspoke.
- lelanthran 1y ago> If R&D were to be stopped now they would be profitable. Not until the cost of the previous training has been completed amortised. Even if some company did immediately stop all training, they would only show a profit until the next SOTA model is released by a competitor, and then they would would go out of business. None of them have any moat, other than large amounts of venture capital. Even if there is a single winner at the end of all of this, all it would take is a much smaller amount of capital to catch up.