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Seeing as the physics and economics of SaaS LLMs are a lot different from branded taxis, and that LLM token prices are down 100x over the past 4 years, there is
by DonsDiscountGas 5mo ago
Seeing as the physics and economics of SaaS LLMs are a lot different from branded taxis, and that LLM token prices are down 100x over the past 4 years, there is good reason to believe that analogy isn't exactly perfect. Price hikes in the near term wouldn't shock me (in fact they've kinda already happened) but in the long term I'm optimistic
- bensyverson 5mo agoTokens are a commodity, so the price should drop over the long term as more and more efficient compute comes online. However, in the short term, these foundation models are worth paying for. So I think we will continue to see the price creep up as investors push OpenAI and Anthropic to drive revenue growth. It's hard to imagine a bright future for either company. The more hopeful analog might be Coca Cola & Pepsi. Both have a commodity product, but due to distribution networks and brand, they command a price premium. But it doesn't seem much fun to provide a high-volume low-margin commodity.