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The thing that everyone seems to be missing is that the US AI companies are focused on the frontier models, that are very expensive for diminishing returns. If
by eloisant 5mo ago
The thing that everyone seems to be missing is that the US AI companies are focused on the frontier models, that are very expensive for diminishing returns.
If suddenly the money craze stops, meaning (1) AI companies investors want them to become profitable and (2) clients start being cost-sensitive to AI bills (which they are absolutely not currently), then everyone will switch to smaller, cheaper models that are enough for a lot of use case.
Sonnet instead of Opus. GPT 5.4 instead of 5.5.
Chinese models.
People keep comparing to Uber but Uber can't suddenly make it cheaper to operate.
- d0100 5mo ago> GPT 5.4 instead of 5.5. I am exclusively using 5.4 because its only 1x and very good, but the github calculation showed my once $40 become a $680 billing That is too expensive and not worth paying
- not_the_fda 5mo agoI work in design services and see clients already being cost sensitive to AI bills. They have wait lists, rationing, push to lower tier / cheaper models. This is all with subsidized pricing. People are going to decide its too expensive for everyone to use AI agents and un-subsidized pricing.
- etempleton 5mo agoThis is absolutely what I think will happen eventually, and I think that becomes a huge problem for Open AI and Anthropic because I don’t think that allows investors to make back their money.
- catdog 5mo agoI think it will in general go more into the direction of using the technology a bit smarter. This will include smaller models but certainly also just less usage overall. Currently a lot of people seem to just burn through tokens without thinking much about what they actually get in return or if an LLM really is actually overall the best tool for the job.