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...

Thanks - yes, I agree, and already I knew this was a thing. I just haven't yet concretely made the actual math, and it left me baffled - Anthropic and OpenAI are charging 1/3 of the COST tops.