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I wonder how a focus on per-token API profits will impact the incentives to improve token efficiency and drive down costs through optimized compute. I suppose a
by x187463 4mo ago
I wonder how a focus on per-token API profits will impact the incentives to improve token efficiency and drive down costs through optimized compute. I suppose as long as a few leading labs are competing, we'll see progress in this regard, but it's certainly less in their interest than it is with a flat subscription pricing model.
- skeledrew 4mo agoThere's also increasing pressure from China: note the massive permanent price reductions DeepSeek and Xiaomi announced in the past few days, with the possibility of more around the corner. And there's also the constant release of increasingly capable open weight models.