Yup they have a cost advantage.

They just need to be good enough and just copy.

Sorry american labs - it’s the beginning of the end.

American labs will do fine with monthly subscriptions costing $20-300/month. They will not do fine for heavy basic LLM API calls -- it is for this that the cheap API produces substantial savings. Specialized niche provisions, e.g. excellent tool use, reliable structured output, reliable long context, cached and uncached web search, document reads, computer use, integrations, etc. also will take time for the foreign services to be good at.

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PunchTornado 8 hours ago | parent [-]

you are not a trillion company if you just get 20$ a month. if that's the case, the valuation will drop 10x

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OutOfHere 2 hours ago | parent [-]

I did note $20-300. In particular, domestic employers would surely still spend the upper end of it for each of their engineer staff. If there are 4 million software developers in the US of any job title, and if the employer of each spends $200 per month for the developer, that's $800M per month in revenue.

	▲	deepvibrations 2 hours ago \| parent [-]
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