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The problem is that when a vendor finances their customers, they can create the illusion of 'real' demand for their product, when most of the the end-users are
by nickff 2mo ago
The problem is that when a vendor finances their customers, they can create the illusion of 'real' demand for their product, when most of the the end-users are only actually using something because it's cheap. When the vendor runs low on cash and starts requiring payment, the customer may not be able to afford it, taking both vendor and customer down, and leaving the end-users who have a real need, and were willing to pay sustainable prices without any options.
- vanuatu 2mo agothat makes sense to me in a conceptual sense however inference is very profitable and plummeting in cost for a given point on the intelligence curve, and nvidia gpus can serve different models so they are protected post-buildout
- nickff 2mo agoYou are describing the justification that NVDA is using to explain their behavior; they see it as something of a 'bridge-loan' until the LLM business model reaches steady-state. The problem is that this explanation has been used for many bubbles, where companies mis-categorize ongoing costs as one-time expenses.
- surgical_fire 2mo ago> however inference is very profitable Is there any actual evidence of that?
- javier2 2mo ago> however inference is very profitable Is it? OpenAI and Anthropic are burning cash faster than anyone has ever shoveled cash into a furnace.
- polski-g 2mo agoThis was true about 18 months ago. It is no longer true.