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I keep hearing that AI providers will eventually stop "subsidising inference", but I do not understand how this would make any sense economically. It is already
by poly2it 5mo ago
I keep hearing that AI providers will eventually stop "subsidising inference", but I do not understand how this would make any sense economically. It is already profitable to host AI model inference for prices cheaper than the big labs are charging, as evident by the plethora of providers available to choose from on OpenRouter, for example. The only way prices could rise without competition is if you sidestepped supply and demand.
- senordevnyc 5mo agoYou keep hearing it because AI haters won’t stop screeching about it, despite all the evidence that they’re wrong. Denial is a helluva drug.
- matheusmoreira 5mo agoI hope you're right. AI is world changing technology, I don't want to live without it anymore.
- AdminAccount 5mo agoThe hosting in it of itself is relatively cheap however with the current attempt by pretty much every major player to outpace one another means they are heavily investing in R&D/ model training, related infrastructure expansion, personnel recruitment/poaching etc. This all makes (to my knowledge all) major model provider run at a net loss despite the huge revenue some have.