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> I see no reason why inference can't have a ~60-80% margin for quite some time. Same as anything with low margin: Viable competition and low switching costs.
by xnx 3mo ago
> I see no reason why inference can't have a ~60-80% margin for quite some time.
Same as anything with low margin: Viable competition and low switching costs.
Many sysadmins lazily do 100% AWS because they don't know any alternatives. CFO's might enforce using more economical inference providers if the cost is even 10% less.
- onlyrealcuzzo 3mo ago> Same as anything with low margin: Viable competition and low switching costs. So why didn't this happen to AWS?
- xnx 3mo agoHigh switching cost.
- onlyrealcuzzo 3mo agoNow do Google
- xnx 3mo agoAdvantages: Lowest inference cost due to scale, experience, advanced datacenters and custom chips. Huge customer base. AI automation will make it much easier to switch from AWS to GCP. Serious organization that doesn't let it's product unknowingly hack companies. Disadvantages: Top model is slightly behind the frontier for now. Bias against using their products because it's not cool/trendy.
- disgruntledphd2 3mo agoTheir big disadvantage is their terrible, no-good, awful product management (which has always been their issue).