4 ms·

Since you couldn't answer, I asked ChatGPT. It said: upfront investment: $3M to $6M. Customers should pay $25k per month. Checks out

by emil-lp 4mo ago

simianwords 4mo ago
I pasted everything you wrote and ChatGPT said >The "$25k per month" figure is almost certainly the result of ChatGPT making assumptions, not a fact derived from any known business model. https://chatgpt.com/share/6a28193b-6ec0-8333-a1af-d07e8d89ef0f https://chatgpt.com/share/6a28193b-6ec0-8333-a1af-d07e8d89ef... Your whole calculation is also ridiculous - I think you assumed what revenue per month is required to pay off hardware within a year? Why would I use hardware within a year? I would suggest consulting with ChatGPT and coming up with a better and more coherent argument.
- emil-lp 4mo ago
  I reran the numbers, break even after four years. 10k users. Minimum upfront: about $15M Comfortable upfront: $20M–$25M Monthly revenue needed: $900k–$1.5M Required price per 10k individual customers: $99–$149/month API-equivalent output price: usually $8–$20/M output tokens, unless utilization is very high.
  - emil-lp 4mo ago
    [flagged]
  - simianwords 4mo ago
    dawg -- what is your point? please write your statement clearly and we can discuss.
    - emil-lp 4mo ago
      My apologies for not being clear about my point. I try to do some napkin math of what it takes to start a company serving an LLM to customers. I thought maybe 10,000 users sounded like a reasonable number. I'd like also to compare it to traditional Internet companies, e.g. Twitter. I'd guess Twitter with 10k users would cost me literally a dumpster dive, so essentially no cost. If I were to start an LLM company, what would my initial investment look like? Turns out around 15+ million dollars assuming I would get 10,000 users willing to pay 200$/month. I just don't see how the numbers you show add up.

4 ms·

Since you couldn't answer, I asked ChatGPT. It said: upfront investment: $3M to $6M. Customers should pay $25k per month. Checks out

by emil-lp 4mo ago

Since you couldn't answer, I asked ChatGPT. It said: upfront investment: $3M to $6M. Customers should pay $25k per month. Checks out

simianwords 4mo ago
I pasted everything you wrote and ChatGPT said >The "$25k per month" figure is almost certainly the result of ChatGPT making assumptions, not a fact derived from any known business model. https://chatgpt.com/share/6a28193b-6ec0-8333-a1af-d07e8d89ef0f https://chatgpt.com/share/6a28193b-6ec0-8333-a1af-d07e8d89ef... Your whole calculation is also ridiculous - I think you assumed what revenue per month is required to pay off hardware within a year? Why would I use hardware within a year? I would suggest consulting with ChatGPT and coming up with a better and more coherent argument.
- emil-lp 4mo ago
  I reran the numbers, break even after four years. 10k users. Minimum upfront: about $15M Comfortable upfront: $20M–$25M Monthly revenue needed: $900k–$1.5M Required price per 10k individual customers: $99–$149/month API-equivalent output price: usually $8–$20/M output tokens, unless utilization is very high.
  - emil-lp 4mo ago
    [flagged]
  - simianwords 4mo ago
    dawg -- what is your point? please write your statement clearly and we can discuss.
    - emil-lp 4mo ago
      My apologies for not being clear about my point. I try to do some napkin math of what it takes to start a company serving an LLM to customers. I thought maybe 10,000 users sounded like a reasonable number. I'd like also to compare it to traditional Internet companies, e.g. Twitter. I'd guess Twitter with 10k users would cost me literally a dumpster dive, so essentially no cost. If I were to start an LLM company, what would my initial investment look like? Turns out around 15+ million dollars assuming I would get 10,000 users willing to pay 200$/month. I just don't see how the numbers you show add up.