They don't have enough compute for all their customers.

OpenAI bet on more compute early on which prompted people to say they're going to go bankrupt and collapse. But now it seems like it's a major strategic advantage. They're 2x'ing usage limits on Codex plans to steal CC customers and it seems to be working.

It seems like 90% of Claude's recent problems are strictly lack of compute related.

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Wojtkie 8 hours ago | parent | next [-]

Is that why Anthropic recently gave out free credits for use in off-hours? Possibly an attempt to more evenly distribute their compute load throughout the day?

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ac29 7 hours ago | parent | next [-]

That was the carrot, but it was followed immediately by the stick (5 hour session limits were halved during peak hours)

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DaedalusII 8 hours ago | parent | prev | next [-]

i suspect they get cheap off peak electricity and compute is cheaper at those times

	▲	jedberg 7 hours ago \| parent \| next [-]
		That's not really how datacenter power works. It's usually a bulk buy with a 95th percentile usage.
	▲	cheeze 6 hours ago \| parent \| prev [-]
		I think it's a lot simpler than that. At peak, gpus are all running hot. During low volume, they aren't.

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troupo 6 hours ago | parent | prev [-]

> Is that why Anthropic recently gave out free credits for use in off-hours?

That was the carrot for the stick. The limits and the issues were never officially recognized or communicated. Neither have been the "off-hours credits". You would only know about them if you logged in to your dashboard. When is the last time you logged in there?

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mattas 8 hours ago | parent | prev | next [-]

Hard for me to reconcile the idea that they don't have enough compute with the idea that they are also losing money to subsidies.

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anthonypasq 7 hours ago | parent | next [-]

they clearly arent losing money, i dont understand why people think this is true

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smt88 7 hours ago | parent [-]

People think it's true because it is true, and OpenAI has told us themselves.

They (very optimistically) say they'll be profitable in 2030.

	▲	Capricorn2481 7 hours ago \| parent [-]
		They're saying Anthropic doesn't have enough compute, not OpenAI. They said OpenAI specifically invested early in compute at a loss.

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Glemllksdf 7 hours ago | parent | prev [-]

They are loosing money because the model training costs billions.

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ACCount37 7 hours ago | parent [-]

Model inference compute over model lifetime is ~10x of model training compute now for major providers. Expected to climb as demand for AI inference rises.

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Glemllksdf 7 hours ago | parent | next [-]

For sure and growth also costs money for buying DCs etc.

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howdareme9 7 hours ago | parent | prev [-]

They are constantly training and getting rid of older models, they are losing money

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ACCount37 7 hours ago | parent [-]

Which part of "over model lifetime" did you not understand?

	▲	adgjlsfhk1 2 hours ago \| parent [-]
		That's not a sufficient condition for profitability if both inference and scaling costs continue to increase over time.

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endymion-light 8 hours ago | parent | prev | next [-]

Honestly, I personally would rather a time-out than the quality of my response noticably downgrading. I think what I found especially distrustful is the responses from employees claiming that no degredation has occured.

An honest response of "Our compute is busy, use X model?" would be far better than silent downgrading.

	▲	Barbing 8 hours ago \| parent [-]
		Are they convinced that claiming they have technical issues while continuing to adjust their internal levers to choose which customers to serve is holistically the best path?

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Glemllksdf 8 hours ago | parent | prev | next [-]

Its a hard game to play anyway.

Anthropics revenue is increasing very fast.

OpenAI though made crazy claims after all its responsible for the memory prices.

In parallel anthropic announced partnership with google and broadcom for gigawatts of TPU chips while also announcing their own 50 Billion invest in compute.

OpenAI always believed in compute though and i'm pretty sure plenty of people want to see what models 10x or 100x or 1000x can do.

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_boffin_ 8 hours ago | parent | prev [-]

You state your hypnosis quite confidently. Can you tell me how taking down authentication many times is related to GPU capacity?