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Cost to consumers is being subsidized by investors trying to grab market share - penetration pricing.
by antonvs 1y ago
Cost to consumers is being subsidized by investors trying to grab market share - penetration pricing.
- petesergeant 1y agoI don’t think that’s true, given the wide range of inference providers on OpenRouter. These are mostly undifferentiated and commoditized, with no chance of gaining market share at the exclusion of others.
- antonvs 1y agoSame issue, you're not seeing what it actually costs, yet. All of those are based on foundation models that have very high training costs - tens to hundreds of millions of dollars. Even smaller models like Mistral apparently cost several million just for compute. The user-facing economics and inference costs are only part of the story.