4 ms·
Sounds like a healthy industry, selling tokens at 1000x below cost.
by MadxX79 5mo ago
Sounds like a healthy industry, selling tokens at 1000x below cost.
- SecretDreams 5mo agoIt's to build a moat, of course! Narrator: there was no moat
- wolttam 5mo agoAPI pricing isn’t cost, we don’t know what cost is.
- impulser_ 5mo agoI would bet money Anthropic and OpenAI are actually profitable on inference. The problem is they have to spend large sums of money to train models that are essentially worthless after a few months.
- Leynos 5mo agoA large part of the GPT-5.x model iteration has been about making training more affordable and token efficient.
- AussieWog93 5mo agoDario explicitly stated this in an interview. They make more money from inference than they do training the model, but then the next model gets so much more expensive to train so their annual figures have been in the red.
- MadxX79 5mo agoSo, it's like if they were a pharma company that was barely profitable if you didn't take into account R&D costs?
- simianwords 5mo agoThis performative concern over token costs and subsidisation comes from either ignorance or some latent ideology signalling.
- xantronix 5mo agoOne could say "that's a great point, we should take more direct ideological action to address this issue!", but expounding upon the finer details would likely get one banned here.