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> We can assume they are doing so at a profit This is false. We may assume it's the most efficient way of generating revenue given their GPUs, but their overal
by yobbo 6mo ago
> We can assume they are doing so at a profit
This is false. We may assume it's the most efficient way of generating revenue given their GPUs, but their overall profitability will just be a guess. They would still have incentives to run hardware at maximum, even when it's uncertain to eventually recoup costs.
> a world where those API prices aren't profitable
A lab with employees and models in training has other costs than the operating expenses of a GPU farm.
- financltravsty 6mo agoThe actual inference is operated at a 95%+ margin.
- aurareturn 6mo agoWhy would a company sell inference on Openrouter if they're not profitable? Except for Grog/Cerebras and a few other hardware companies looking to showcase their new chips. If they're losing money and have no VC backing, they'd just turn off the lights.