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Der_Einzige 8 hours ago

Anyone who thinks that the labs are not profitable on per token API pricing is delusional and hilariously wrong.

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flaburgan 7 hours ago | parent [-]

It all depends if you count the fixed cost of training or not. And the cost of the hardware.

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flyinglizard 7 hours ago | parent [-]

Or even the basis of the cost of hardware. There are lease deals, capacity traded for equity, various programs by Nvidia, there's absolutely massive depreciation, etc.

	▲	Der_Einzige 20 minutes ago \| parent [-]
		Depreciation is massively overrated by Micheal Berry and his ilk. Everyone keeps thinking those A100s only have 6 more months of life, and yet they're still going for more than they did per hour in 2024. Show me evidence that A100 prices have collapsed, and maybe GPU depreciation will be relevant to the market.