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> At this point, it's becoming obvious that it is not profitable to provide model inference, despite Sam Altman recently saying that OpenAI was. Except the aut
by km3r 1y ago
> At this point, it's becoming obvious that it is not profitable to provide model inference, despite Sam Altman recently saying that OpenAI was.
Except the authors own provided data says it cost them $2B in inference costs to generate $4B in revenue. Yes training costs push it negative, but this is like tech growth 101, debt now to grow faster leads to larger potential upsides in the future.
- ASinclair 1y agoTraining costs keep exploding and several companies are providing frontier models. They'll have to continue shoveling tons of money into training just to stay in place with respect to the competition. So you can't just ignore training costs.
- orbital-decay 1y agoDeepSeek alone demonstrated a massive reduction in training costs, and there's a ton of low-hanging fruits nobody even started to use.
- palata 1y ago> Yes training costs push it negative But training will have to stay forever, right? Otherwise the LLM will be stuck with outdated information...
- qcnguy 1y agoIt's not just training. Look at all the other costs in The Information's graph. Salaries, general admin, data licensing - all huge costs.