Well, in addition to that you also have to consider that companies are now paying (increased) API pricing. It would be an understatement to say that my clients in the F100 range are skeptical at best regarding the gains they’ve seen compared to the costs.

This has led to many of them instilling dollar limits or demanding proof of increased productivity (not just output) with the implication being if you don’t provide value with it it’s getting taken away.

So that is to say, if they aren’t happy with the price now, how will they feel when it goes up again compared to just keeping a certain headcount?

▲ andrekandre 10 hours ago | parent | next [-]

  > So that is to say, if they aren’t happy with the price now, how will they feel when it goes up again compared to just keeping a certain headcount?

that got me thinking: how are companies expensing ai costs? as personnel expenses or r&d etc?

	▲	b112 3 hours ago \| parent [-]
		Oh wow. You just hit something there. There are government programs for R&D where I live. Grants. Tax credits. This sort of thing. I wonder if people are trying to expense to those programs too.

▲ fuzztester 10 hours ago | parent | prev | next [-]

>This has led to many of them instilling dollar limits or demanding proof of increased productivity (not just output)

They should have done that from the beginning - demanding proof of increased productivity - if that was their goal. otherwise they were not using their brains well enough.

And you doubly don't want to work with them, first because they confused output with productivity at first. and second, because they're parroting the productivity metric.

You only need one guess for whose pockets the productivity benefits go into.

10 . 9 . 8 . 7 . 6 ...

▲ b112 3 hours ago | parent | prev [-]

When I was a teenager, a friend had an old gas guzzler from the 70s. I live in a rural area. One time, my car broken, he drove to pick me up to go to College.

This cost him an extra $40, in today's dollars. No, I'm not joking. That thing ate gas like a dry camel drinks water.

This is what Fabel5 feels like. Crazy expensive. 10 minutes work pulled almost $80 is usage credits yesterday. I'd be exceptionally skeptical too, on costs, if I still had the DEV I had last week, but they were also eating that kind of cash on a very-improved, but still used as a linter.

For $200+/hr, or ~$400k/year, I'd want to see a tripling of output at least. In a lot of US markets, you can hire 3 junior devs for that.

Yes, there are cheaper options. Opus, etc. But it's really over-priced, and frankly I think the real gold now is making open models fully functional. Anyone predicating their business upon tie-in with the big boys is just going to fail, hard.