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There have been plenty of studies which indicate that inference considered by itself is almost certainly quite profitable at all the frontier labs. The problem
by semiquaver 6mo ago
There have been plenty of studies which indicate that inference considered by itself is almost certainly quite profitable at all the frontier labs. The problem is amortizing the cost of all the expensive training runs required to train new models into the revenue stream.
- pkaye 6mo agoDoes that mean those running the open models are highly profitable since they don't have to do any training?
- polski-g 6mo agoYes obviously, otherwise they wouldn't be doing it; they'd just go back to mining shitcoins.
- semiquaver 6mo agoI don’t know about highly since they have no moat even more than Antrhropic and OpenAI have no moat. Anyone with a few hundred thousand dollars or sufficient free GPUs can compete with them. So running an open model should earn a market-rate margin.