| ▲ | user43928 3 hours ago |
| The demand for AI exists today. As in OpenAI is at capacity, 6.1 Sol is served at 30 tokens per second and with frequent capacity errors. Anthropic seems better now but were also working hard on expanding capacity. I have no crystal ball to see how future demand and capacity will develop, but as of today these data center investments appear to be fully utilized. Some people anyway seem to think a collapse is inevitable. |
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| ▲ | jack_pp 2 hours ago | parent | next [-] |
| maybe collapse in valuation, collapse in demand? I don't see that happening any time soon, it's too useful, idk how anyone can contest it is useful and not just hype. |
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| ▲ | cute_boi 2 hours ago | parent | prev [-] |
| it is all because of subsidization. If OAI or Ant starts to use real pricing there will be lot of capacity. |
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| ▲ | user43928 2 hours ago | parent | next [-] | | No, in fact inference is far cheaper than most think, see analysis for serving Kimi K3. If you mean OpenAI and Anthropic's investments into R&D, ok, perhaps. However, they will not be able to increase prices unless what they are offering next is a significant enough improvement over the current SOTA, which might only be six months ahead of the Chinese models. | | |
| ▲ | intorio 2 hours ago | parent [-] | | Not only is inference currently much cheaper than people seem to think, it is going to get much cheaper. NVIDIA’s Vera Rubin is going to drive costs down for current models considerably. |
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| ▲ | karahime 2 hours ago | parent | prev [-] | | How do you know that it's subsidized? | | |
| ▲ | gruturo an hour ago | parent | next [-] | | I really dislike that term. It's stupid and supports a distorted narrative. They arbitrarily decide 1M API tokens cost X, and any subscription where usage costs less than that is "subsidized". No it isn't. They may be profiting on subscriptions as well, or losing on full API costs as well, or anything in between, and that X is anyway more reflective of competition than their costs. For all we know they did a rand()%1000 to determine it in the first place. | |
| ▲ | crote an hour ago | parent | prev [-] | | If it isn't subsidized, why aren't all those AI companies making huge amounts of profit? Instead they are rapidly burning through the billions, and the money must be going somewhere. | | |
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