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I think this is directly related to https://x.com/sama/status/1965110064215458055 https://x.com/sama/status/1965110064215458055 And I think it was 100% on purp

by naiv 1y ago

I think this is directly related to https://x.com/sama/status/1965110064215458055 https://x.com/sama/status/1965110064215458055 And I think it was 100% on purpose that they degraded the model performance as Claude Code got so popular and they either ran out of capacity or were losing money too fast. But now that people are fleeing to Codex as it improved so much during the time, they had to act now.

deepdarkforest 1y ago
They will probably also release sonnet 4.2 or something soon to make people jump back again to try it and hopefully restick
deleted 1y ago
[deleted]
rsanek 1y ago
I wonder how long the myth of AI firms losing money on inference will persist. Feels like the majority of the evidence points to good margins on that side
- disgruntledphd2 1y ago
  > I wonder how long the myth of AI firms losing money on inference will persist. Feels like the majority of the evidence points to good margins on that side If they're not losing money on inference, then why do they need to keep raising absurd amounts of money? Like, if inference is profitable and they're still losing lots and lots of money, then training must be absurdly expensive, which means that basically they invest in quickly depreciating capital assets (the models) so not a good business. I think Anthropic is an interesting case study here, as most of their volume is API and they don't have a very generous free tier (unlike OpenAI).
  - consumer451 1y ago
    > If they're not losing money on inference, then why do they need to keep raising absurd amounts of money? I recently heard someone say that ~"state of the art LLMs are the most rapidly depreciating asset in history." This seemed accurate sounding to me. Anyone else have thoughts on this?
theshrike79 1y ago
If Codex CLI was even half as good as Claude Code's CLI, I'd seriously consider moving. But alas it's not. It looks like some intern whipped it together.

by naiv 1y ago

deepdarkforest 1y ago

They will probably also release sonnet 4.2 or something soon to make people jump back again to try it and hopefully restick

deleted 1y ago

[deleted]

rsanek 1y ago

I wonder how long the myth of AI firms losing money on inference will persist. Feels like the majority of the evidence points to good margins on that side

disgruntledphd2 1y ago
> I wonder how long the myth of AI firms losing money on inference will persist. Feels like the majority of the evidence points to good margins on that side If they're not losing money on inference, then why do they need to keep raising absurd amounts of money? Like, if inference is profitable and they're still losing lots and lots of money, then training must be absurdly expensive, which means that basically they invest in quickly depreciating capital assets (the models) so not a good business. I think Anthropic is an interesting case study here, as most of their volume is API and they don't have a very generous free tier (unlike OpenAI).
- consumer451 1y ago
  > If they're not losing money on inference, then why do they need to keep raising absurd amounts of money? I recently heard someone say that ~"state of the art LLMs are the most rapidly depreciating asset in history." This seemed accurate sounding to me. Anyone else have thoughts on this?

theshrike79 1y ago

If Codex CLI was even half as good as Claude Code's CLI, I'd seriously consider moving. But alas it's not. It looks like some intern whipped it together.