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Google and ChatGPT are both running LLMs on free user queries. If Google is doing it more profitably, it’s because they have a much more mature ad business, and
by ashdksnndck 2mo ago
Google and ChatGPT are both running LLMs on free user queries. If Google is doing it more profitably, it’s because they have a much more mature ad business, and/or they are running a cheaper LLM. There’s no fundamental difference in the business model in that specific product line.
Regarding Claude, it’s true they must be losing money on free users since they promised they won’t put ads there.
Speculatively, I think people are overestimating the cost of inference for the consumer free tier chatbots. I suspect it’s effectively a marketing cost. The primary expenses are compute to train the next model, stock compensation, and heavy-duty enterprise inference (which pays for itself).
- cute_boi 2mo agoEventually they will show ads. Ads are like disease, we can stop for sometime, but they will find a way to infect. Eg. Netflix, chatgpt etc..
- bitpush 2mo agoI agree. But then again you and I are contrbuting to that. We invest our money into S&P 500 hoping it'd grow (and that greed / need is what is contributing to companies trying to make a profit). It isnt Netflix deciding, sure I'll make money, it is more shareholders are demanding profits .. and Netflx is forced to act. So if Ads are a disease, and we (you + me + anyone with a stake in the US economy's growth) are the virus.