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I know for most people that the big surprise here is sustained search ad revenue in the face of AI. But I’m super curious on margins because I thought for sure
by toddmorey 6mo ago
I know for most people that the big surprise here is sustained search ad revenue in the face of AI. But I’m super curious on margins because I thought for sure offering so much free AI inference would be so insanely expensive it harmed margins.
- halJordan 6mo agoNo one is losing money on inference these days. Google's vertical integration means that they have some of the lowest inference costs in the industry in any event.
- fancyfredbot 6mo agoMicrosoft recently announced changes to copilot because, apparently, it was losing money on inference.
- kingstnap 6mo agoThey were loosing money giving absurdly generous agentic usage on expensive models to people with $10 to $40 flat rate subscriptions. They weren't selling inference.
- UltraSane 6mo agoThey were charging a flat rate per query no matter how many tokens it consumed. People naturally got very good at writing prompts that used as many tokens as possible.