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If they can cut the price of Sol by 50% and the price of Luna by 80%, then the original price might have carried a massive operating margin. They might still be
by z_rho_one 2mo ago
If they can cut the price of Sol by 50% and the price of Luna by 80%, then the original price might have carried a massive operating margin. They might still be serving the models at a profit after these price cuts, but we will never know.
- paxys 2mo agoI don’t think there’s a real answer for this. Margin depends on whatever number the accounting department wants to make up. Do you include research and training costs? Of all models or only the ones being served? What percent of the R&D budget do you allocate to inference? What about data center capacity? Do you count future commitments? All the circular financing deals? Do you count employee equity grants as costs? At what valuation?
- dannyw 2mo agoWe have a simple definition for this: COGS. We also have another solution for "whatever accounting decides": generally accepted accounting practices. It's far from perfect, but GAAP figures are what you should be looking at; not "adjusted GAAP" or whatever invention.
- wahnfrieden 2mo agoOpenAI didn't cut the price of Sol by 50% like they did with Luna's 80%. Sol was unchanged. This is just a limited promo for OpenRouter non-BYOK.
- josu 2mo agoI always find it funny that Japanese pensioners are probably subsidizing my tokens.
- InsideOutSanta 2mo agoI'm pretty sure tokens are priced to maximize revenue, not inference profit.
- kolinko 2mo agoOr they have gotten new asics and can do now inference way cheaper
- XCSme 2mo agoWhy would they infer faster with new shoes?
- tclancy 2mo agoIt is a well-accepted fact new shoes make you faster. Current science suggests it is due to the lighter weight from lack of dirt, though there is a competing theory which says it's an optical illusion due to the fact the pure white streaks resemble speedforce.