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throwa356262 14 hours ago

What is going on? Why are everyone except OpenAI short on compute?

Even Chinese ultra cheap providers are slowly reducing token plans or increasing prices.

cedws 14 hours ago | parent | next [-]

I doubt it’s compute, Anthropic just bought a huge amount of capacity from xAI. I mean SpaceX. No, I mean SpaceXAI.

They’re trying to stop bleeding cash.

tcp_handshaker 12 hours ago | parent [-]

That data center was setup wrongly, is broken and unusable for training. Its amazing Musk manages to fool even Anthropic.

skeledrew 9 hours ago | parent [-]

Amazing that Anthropic is using this "broken and unusable" data center successfully, pushing new models and providing sufficient inference that we no longer have the absurd limits from the weeks leading up to them making that deal.

dgellow 13 hours ago | parent | prev | next [-]

Anthropic will IPO soon and need to show good numbers. Everything happening in the next weeks/months is about that.

The others are trying to reduce their costs, you have to understand that nobody has a moat, and nobody is profitable. While at the same time the cost of energy and hardware is going up.

gmerc 14 hours ago | parent | prev | next [-]

Everyone has been running promotions and, gosh, demand is up.

csomar 13 hours ago | parent | prev [-]

It’s not clear how much each token costs and how much it’s being subsidized. It was never meant to last, at some point the music was going to stop and you have to pay full price.

anthonypasq 8 hours ago | parent [-]

api pricing has 80+% margin.