Published today, leading with "Recently, I ran an AI model locally and reached a conclusion that is hard to ignore: the major LLM providers are probably operating with substantial subsidies to sustain their services at current prices." is wild.

How do you get all the way to running a local model without having heard that this is the case? Like...it's so well documented...I wonder if author knows that a portion of the subsidy is that the models are being trained on free, cheap, and chat models...

This seems incredibly obvious to me I guess, because its an industry standard play.

Establish marketshare, then monetize.

And right now, the industry is caught in this feedback loop that seems to inflate the stock prices of everyone involved. AI needs gpu's, which grows the gpu sector, which AI needs, because if its userbase. And then it buys more gpus.

The growth has to stop at SOME point...

I'm waiting for a massive shoe to drop on token pricing. It's unsustainable.

The quote at the beginning is of Alan Kay though. https://en.wikiquote.org/wiki/Alan_Kay

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