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throwawayajner 2 days ago

Zitron misunderstands the economics of models. Inference costs have dropped 99% in less than 2 years. Models are being commoditized faster than any technology in history.

A $20 subscription 2 years ago is not providing the same level of intelligence you're getting today.

Every major lab knows open source models are 6 months behind (See Google's "We have no moat") and none of them plan to make money on inference. Companies are subsidizing users to create moats that persist when models are essentially free for most everyday use.

pmdr 2 days ago | parent [-]

> A $20 subscription 2 years ago is not providing the same level of intelligence you're getting today.

That subscription was then and is now likely still subsidized.

davikr 2 days ago | parent [-]

For all we know, there could be 10 people paying for a ChatGPT subscription and not using it enough to subsidize 1 power user _and_ still have money left for profit.

pmdr 2 days ago | parent [-]

Oh they'd be sure to let us know if that were the case.

warkdarrior 2 days ago | parent [-]

Why would the AI companies advertise that most of their users do not use their subscription in full??

2 days ago | parent [-]
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