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> There exist a large number of people who are absolutely convinced that LLM providers are all running inference at a loss in order to capture the market and wi
by gpugreg 4mo ago
> There exist a large number of people who are absolutely convinced that LLM providers are all running inference at a loss in order to capture the market and will drive the prices up sky high as soon as everyone is hooked.
> I think this is often a mental excuse for continuing to avoid engaging with this tech, in the hope that it will all go away.
Thanks for that psychological explanation. I was wondering why people were simply ignoring the math that shows that inference at API pricing can be quite profitable, e.g. published here for DeepSeek V3/R1 with 545% profitability: https://github.com/deepseek-ai/open-infra-index/blob/main/202502OpenSourceWeek/day_6_one_more_thing_deepseekV3R1_inference_system_overview.md#statistics-of-deepseeks-online-service https://github.com/deepseek-ai/open-infra-index/blob/main/20...