Why is Grok so much cheaper than Claude or GPT?

stickfigure 3 hours ago | parent | next [-]

The answer is simple: They're willing to burn money faster than the others.

Nobody's profitable in this space, they can price it however they want as long as investors keep pouring money in. And SpaceX just got a lot of money poured in.

	▲	mohamedkoubaa 3 hours ago \| parent [-]
		My strat until the bubble pops is to just use the most subsidized model with acceptable performance

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iSloth 4 hours ago | parent | prev | next [-]

He owns the DCs and isn’t scrambling for revenue to justify an upcoming IPO

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mrguyorama 4 hours ago | parent | prev | next [-]

Demand so much lower they had to resell capacity.

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slopinthebag an hour ago | parent | prev | next [-]

Because the model is probably smaller. Go look at openrouter’s costs for other open models around this performance level, they’re similar.

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petesergeant 5 hours ago | parent | prev [-]

Elon owns a lot of compute