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The value is going up, but the pricing is going down, right? At least at the token level. So the usage would have to go up dramatically to compensate for that
by rootusrootus 1mo ago
The value is going up, but the pricing is going down, right? At least at the token level. So the usage would have to go up dramatically to compensate for that.
> there is an upper bound for the price of a house set by people’s income
Isn't that essentially true here too? The money to pay these expected future AI prices is coming from someone's income. Sure, the pie will be growing at the same time, but enough?
- chermi 1mo agoIndividuals and families buy houses(ideally). Entities like corporations buy work, often intelligent work. If they can crank up outputs and profits via more intelligent work done by models, I think the ceiling is global demand for the entity's product. Which is still a bound, and ultimately set by individual consumers. The question is whether the consumers will have the income to spend. So I kind of agree in the end I guess.
- rkangel 1mo agoThe performance of the recent open weight models is making it harder for the bug players to justify their pricing.