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brachkow 2 hours ago

Idea that AI is very expensive and will not be viable without "subsidization" for personal use is very shortsighted:

1. We measure "subsidization" in relation to API pricing. API pricing is very overpriced, to compensate for this "marketing subsidization", R&D, and everything else. A few months ago, Anthropic was close to being profitable

2. In general, OpenAI and Anthropic are US companies, and the US is known to have price disease, with all those huge salaries, multibillion note-taking apps, and fighter jets that cost too much to fly. China, and other countries in the future, could produce roughly the same output for way less money, as they did with everything else

3. Compute progress still happens. We can already run models better than GPT-3.5 locally on an iPhone