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1dom 5 hours ago

This is a cool way of approaching AI models. I'm a big fan of local LLMs, local specific models like this should be even more powerful.

> Every model is free up to 100k monthly active devices. No tokens, no logins.

I dunno about the business model though. Cloud LLM billing makes sense: you're getting another computer to do work with each request, and using their compute via their gateway that they bill you.

These local models are like old school software. They're producing the weights, and then giving them to people. If I'm happy with the weights you've given me, and I'm not using your compute for inference and not wanting or needing any updates off you, why should you continue getting money off me and my customers?

The whole "but we need to keep it updated for your security" doesn't really work as well for software designed to run fully offline like these local models are.

I'm not saying they shouldn't get paid, but I guess I feel a personal sadness that it's less obvious how to successfully monetise such a sincerely useful and beneficial approach towards AI models.

DrScientist 13 minutes ago | parent | next [-]

As far as I can see there is no clear pricing once you go beyond the free tier - it's contact sales.

This is actually a classic enterprise software approach - as there are no fixed per unit production costs to cover, the pricing is very elastic.

ie each license is probably a negotiation - if you see your app for a one off fee then they want a one-off cut - if you sell a subscription they may want a cut of that instead.

Obviously the risk is if you bake it in and your app becomes successful they may want a larger cut than you can afford, but if they don't negotiate in good faith they won't last very long.

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

> If I'm happy with the weights you've given me, and I'm not using your compute for inference and not wanting or needing any updates off you, why should you continue getting money off me and my customers?

I definitely understand the appeal of the desire to “buy it once”, but I think there are a few issues:

- almost no software is static. Look at a package like python Requests and even though it does the simplest thing and has barely changed from a user perspective, it gets updated all the time. This is true for most software. This is doubly true for something like local AI models where both the software and the hardware are changing constantly. Subscriptions motivate sellers to keep their software up to date.

- If I’m an app developer, the idea that I can try something out for $X/month is very appealing versus making an upfront investment of (let’s say) $X*20. This is doubly true for something like local models where I will almost certainly want something new when the models improve.

- To add to the first point, I work at a startup. No one asks questions when I want $20/month licenses. But let’s say I want something that’s gonna be in the 5 figure range annually. If I go to my CFO and ask for $50k upfront and then we implement something and the project fails, I look like an idiot. If I ask for $2000/mo budget for something and then we try it for two months and it fails, no one cares. Subscriptions are just safer in this sense.

1dom 2 hours ago | parent | next [-]

I think the issues you're describing are all modern internet software issues. I'd guess you're possibly a bit younger than me, or maybe forgotten how software worked before about 2010.

- All compiled software is static. New versions are released. I'm happy to pay for new versions/features if I want/need them. But if the version I have is working offline, it doesn't need security updates, and if it does what I need, it doesn't need new features. Same applies if I'm building software for others, if the library does what I need for my software for my customers and I need nothing more off the dev, why should I keep paying the dev?

- I'm struggling not be sarcastic here, sorry, but this might shock you to hear: most humans find the idea of being able to try whatever they want and get paid for it appealing. That's not really how money or life works though.

- I don't know how to respond to this point, it's a bit of a strawman. Yes, if the only other option is to pay $50k up front for a local model, then your point is valid.

As a kid, I spent literally hundreds of £ on the first Sims, and Sims expansion packs at £20 /pop. EA got loads of money off me, I got loads of new features I wanted. I moaned at the time, but on reflection, everyone was a winner. Sims is still going now (possibly as a subscription!)

Again, apologies for a bit of sass here (that's a me problem), but the number of people who seem to sincerely believe the points you've put forward is why I'm personally sad at the state of modern software economics.

chadash 2 hours ago | parent [-]

I'm old enough to remember buying software in cardboard boxes at Bestbuy.

> I don't know how to respond to this point, it's a bit of a strawman.

Why is it a strawman? I can sell you software for $100 once or I can sell it to you for $10/month. I don't think anyone is suggesting that I'm gonna sell it for $10 once though.

In particular, Desert Ant is saying their software is free for 100k active devices per SDK. That's likely a lot more users than most peoples' side projects. Given that, I'm guessing that $50k (even annually) is not a crazy number (yes, obviously $50k is not what a consumer would ever pay).

horsawlarway 2 hours ago | parent | next [-]

50k annually for a static set of weights is actually crazy, though.

As in - I make software for a living and they can fuck off. Produce the item. Sell the item at a cost you find reasonable. Convince me to buy it again with an upgrade that's worth buying.

Period.

There's no "service" happening here. If anything, the proposed cost model just makes me incredibly unlikely to engage at all, because it means they're going to insist on trying to track my users (a thing I don't like doing...) with whatever bloatware they shove into their "sdk".

weitendorf 13 minutes ago | parent [-]

They're not selling it to you/it doesn't come out of your salary?

They're selling it to your employer. You're literally not even the customer for this product. There's no need to get angry that they're charging enterprise/vendor rates for a product.

And it's free for up to 100k devices. If you are running anything on 100k devices you should be able to afford $0.50/device and. If you aren't then why do you care? It's still a very customer-permissive and flexible business model so I cannot understand why this is upsetting or offensive

1dom 2 hours ago | parent | prev [-]

It's a strawman because it only makes sense if the one off up front cost is $50k, which wasn't the argument I was making. If the one-off up front cost is $20, then your point makes no sense - your boss would have no issue.

An alternative would be instead of 1 of charging over 100k users $50k, charge every user a one off $20.

I guess it's hard to discuss alternative billing methods without knowing what need to be recuperated.

Thanks for the response, appreciated. Again, sorry for the sassyness.

TechSquidTV 4 hours ago | parent | prev [-]

LLMs are static though.

sejje 3 hours ago | parent | next [-]

In the way that, say, Garmin Maps are static, I agree.

Caracas288 3 hours ago | parent | next [-]

Very much like map CD-rom updates, I think a lot of people wouldn't mind paying per-update for these models, and would understand the implications. That is, if there weren't so many open models available.

TechSquidTV 3 hours ago | parent | prev [-]

... So we both agree.

4 hours ago | parent | prev [-]
[deleted]
handfuloflight 4 hours ago | parent | prev | next [-]

How is it not obvious and fair that they are asking you to pay them when you see success (defined as >100K MAU)? How more aligned can you and them be besides this?

Muromec 3 hours ago | parent [-]

When I buy I chair I don't pay a share of my income to the furniture shop when I get rich. I would buy another chair at some point too, maybe fancier one (or the same). Because chairs are commodity. I do however pay taxes to the government based on my income because it keeps doing ongoing maintenance on everything.

Everyone wants to be paid forever for something they produced once is some kind of a mind virus. Make me a better chair and maybe I will buy it, but don't expect to become a trillion dollar company. It's deeply unfair to everyone who wants to be a trillion dollar company of course.

What is really funny to me -- the ones that do make it to collect the rent indefinitely also decrease their own taxes paid to the government AND also decrease the amount of contribution to society by making less and shittier stuff.

adhi001 2 hours ago | parent | next [-]

A model's weights can be pirated unlike a chair and that is the difference..?

HeatrayEnjoyer an hour ago | parent [-]

What does that have to do with the business model?

handfuloflight 3 hours ago | parent | prev | next [-]

Analogy doesn't apply to this case, as you are paying for the chair upfront but not paying for the model weights upfront.

1dom 2 hours ago | parent | next [-]

The only reason my chair manufacturer would be entitled to the proceeds of my success whilst I was in their chair is if I hadn't already paid them for the work they put into making the chair for me. Even then, why would my success with their product have anything to do with how much they can charge me for their labour? What other things work like that outside of the modern tech world?

Seriously, look around you, pick a thing, imagine a world where the price you paid for that thing hinged on your personal individual success with that thing.

edit: to clarify, my point is why can't we pay for the model weights up front for offline models? Why would we continue paying for things we don't want/need anymore, like updates for offline software that does it's job fine?

handfuloflight 2 hours ago | parent [-]

If they charged for the weights up front, then your critique would simply reverse.

wredcoll 2 minutes ago | parent [-]

What, why?

Muromec 3 hours ago | parent | prev [-]

I'm also not downloading a chair, because why would it?

handfuloflight 2 hours ago | parent [-]

Exactly, so your analogy is useless.

visarga 2 hours ago | parent | prev [-]

> When I buy I chair

You should, sitting on that chair got you in the zone where you made it rich. /s

embedding-shape 3 hours ago | parent | prev | next [-]

How would a model where you pay per each model/weight update feel like? More similar to traditional software, where you'd get the current version, maybe even free/rebated version upgrade to the next, but then have to do another purchase to get the latest version? Or something similar to that?

Feels like it'd be more aligned with how the business and users would produce and use it, it'd be something like: "We've done a bunch of research and output, here is the thing, you can buy it, and we'll work on the next, then you can pay again for the next if you'd like".

1dom 2 hours ago | parent [-]

This seems like common sense. I guess it's not seen as common sense any more because the assumption is that all software is going to be using someone else's compute, or be connected to the internet and therefore require regular updates.

If neither of those are true, a subscription or recurring license or similar regular fee just feels like greed/robbery.

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

> If I'm happy with the weights you've given me, and I'm not using your compute for inference and not wanting or needing any updates off you, why should you continue getting money off me and my customers?

Because they own the IP and they get to decide the terms of how it’s licensed.

This is like a company taking open source software, saying they like the code the community has given them, and asking why they should continue having to respect the terms of the license after downloading the code. The availability of the software (or models) does not equal a free license to use as you please.

A license allowing 100K devices for free is very generous. The businesses selling more than 100K units of anything will be significant operations. It’s fair that they’re asked to contribute financially.

serf 3 hours ago | parent | next [-]

>Because they own the IP and they get to decide the terms of how it’s licensed.

how'd that work out for the rest of IP owners that had their stuff used as training data for use in model creation?

was the material they trained on produced in-house?

Aurornis 3 hours ago | parent | next [-]

Use as training data has been tested in court multiple times and cleared.

I know some people want it to be a legal violation, but it’s not.

Also these are audio models, if you hadn’t noticed. The training sets for this type of work is very different than the corpus of scraped GitHub repos.

HeatrayEnjoyer an hour ago | parent | next [-]

This is not even remotely settled law yet, what an absolute falsehood!

It will take years for the hundreds of jurisdictions in the world to write new laws and (in common law countries) establish new precedent.

Chris2048 an hour ago | parent | prev [-]

Presumably it's fine to train a model on their model then?

Dlemlo 3 hours ago | parent | prev | next [-]

Was the material, I was trained, produced in-house?

Philosophical questions don't make sense if you use them to counter argue about something which is a legal issue.

avazhi an hour ago | parent | prev [-]

> how'd that work out for the rest of IP owners that had their stuff used as training data for use in model creation? was the material they trained on produced in-house?

Not only did you pull a whataboutism but the whataboutism isn't even relevant to the topic of conversation lol.

sejje 4 hours ago | parent | prev [-]

He's not arguing about their right to license it how they please. He's arguing that someone ought to choose to do it another way.

You made up a position to argue against.

Aurornis 4 hours ago | parent [-]

No, you’re arguing against the first part of my comment without reading the whole thing where I addressed the value proposition.

A 100K free device license is a generous gift to small companies. Past 100K, it’s more than fair to ask that companies contribute. That’s a significant operation at that point and the model has obviously provided value.

If the model doesn’t provide any value to a >100K device company then they should train their own or not use it.

I could see how people unfamiliar with per-device or per-unit licensing fees would be confused, but this is a common business model. Scaling payments with the customer’s business success is one of the more fair ways to align vendor and customer while also providing a nice way to give freely to smaller businesses like this.

It’s a good thing. It’s silly that a company giving away a license for 100K devices, which covers small and medium hardware operations, is being criticized for this of all things.

donavanm 4 hours ago | parent | prev [-]

> why should you continue getting money off me and my customers?

Welcome to the concept of fair market value. Less snarkily you're conflating the concepts of price and cost; theyre not the same thing and theyre not the same for you or the seller.

Muromec 3 hours ago | parent [-]

How does piracy of digital content and software factor into this concept?