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Anthropic has shared that API inference has a ~60% margin. OpenAI's margin might be slightly lower since they price aggressively but I would be surprised if it
by CuriouslyC 7mo ago
Anthropic has shared that API inference has a ~60% margin. OpenAI's margin might be slightly lower since they price aggressively but I would be surprised if it was much different.
- bigfishrunning 7mo agoIs that margin enough to cover the NRE of model development? Every pro-AI argument hinges on the models continuing to improve at a near-linear rate
- tonfa 7mo agoYeah but the argument people make is that when the music stops cost of inference goes through the roof. I could imagine that when the music stops, advancement of new frontier models slows or stops, but that doesn't remove any curent capabilities. (And to be fair the way we duplicate efforts on building new frontier models looks indeed wasteful. Tho maybe we reach a point later where progress is no longer started from scratch)
- phist_mcgee 7mo agoGross margin