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Anthropic and OpenAI don't own data centers. Since they're renting GPU's, that's not depreciation. Paying rent is an operating cost. Language models don't wear
by skybrian 5mo ago
Anthropic and OpenAI don't own data centers. Since they're renting GPU's, that's not depreciation. Paying rent is an operating cost.
Language models don't wear out the same way; upgrading is a choice.
- ACCount37 5mo agoNot a real choice. You can "just not update an LLM" in theory. But if your competition updates LLMs, and gets more capable, more efficient LLMs, and you don't? They get more capable "expensive tiers", and cheaper "cheap tiers" of LLMs. What are you going to do then? Bleed userbase and die?
- skybrian 5mo agoSure, that's the competitive arms race aspect of it. But there's still some control over timing.
- grttq 5mo agoIf they’ve entered into contractual agreements then actually it is debt.