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All SOTA model providers are losing money. When users run Opus, they are essentially renting a GPU cluster worth half a million dollars for a $100/$200 subscrip
by Chyzwar 5mo ago
All SOTA model providers are losing money. When users run Opus, they are essentially renting a GPU cluster worth half a million dollars for a $100/$200 subscription. If they want to IPO, they need to show a projection toward profit.
For that reason, they want to discourage power users and attract normies.
- energy123 5mo ago> All SOTA model providers are losing money. Source? I only read one article on this topic and they approximated gross margins at 50%. > When users run Opus, they are essentially renting a GPU cluster worth half a million dollars for a $100/$200 subscription. They use a large batch size, you're sharing the GPU with many other people.
- Chyzwar 5mo agoGross margin calculated on API token pricing with discounted training and hardware deprecation. I am no so sure about batch sizes, chatgpt napkin calculation for 5T model show 10-300 sessions.