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OpenAI dropped the price of o3 by 80%

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Re: OpenAI dropped the price of o3 by 80%

#181

Post by wrsh07 »

Traubenfuchs wrote: post #131
biophysboy wrote: post #40

I don't know if this is OpenAI's intention, but the little message "you've reached your usage limit!" is actively disincentivizing me from subscribing. For my purposes, the free model is more than good enough; the difference before and after is negligible. I honestly wouldn't pay a dollar. That said, I'm absolutely willing to hear people out on "value-adds" I am missing out on; I'm not a knee-jerk hater (For context,…

> "you've reached your usage limit!" Just switch to a competitors free offering. There are enough to cycle through not to be hindered by limits. I wonder how much money I have cost those companies by now? How anyone believes there is any moat for anyone here is beyond me.

I expect the answer is <$1 as someone who shares a discord server with a friend where we egregiously ping the models

Re: OpenAI dropped the price of o3 by 80%

#182

Post by arandomhuman »

ToucanLoucan wrote: post #111
arealaccount wrote: post #107

Earlier quoted context omitted.

Dying for a reference on the cult stuff, a quick search didn’t provide anything interesting.

Scroll through the ChatGPT subreddit right now and tell me there isn't a TON of people in there who are legitimately unwell. Reads like the back page notes of a dystopian novel.

I think this is less caused by ChatGPT/LLMs and more of a phenomenon in social media circles where people flock to "the thing" and have poor social skills and mental health generally speaking.

Re: OpenAI dropped the price of o3 by 80%

#183

Post by MangoToupe »

arealaccount wrote: post #107
ToucanLoucan wrote: post #77

Earlier quoted context omitted.

I mean sure, it's very promising if OpenAI's future is your only metric. It gets notably darker if you look at the broader picture of ChatGPT (and company)'s impact on our society. * We have people uploading tons of zero-effort slop pieces to all manner of online storefronts, and making people less likely to buy overall because they assume everything is AI now * We have an uncomfortable community of, to be blunt, act…

Dying for a reference on the cult stuff, a quick search didn’t provide anything interesting.

In addition to what the parent commenter was likely referring to, there are also the Zizians: https://en.wikipedia.org/wiki/Zizians

Re: OpenAI dropped the price of o3 by 80%

#184

Post by wrsh07 »

codr7 wrote: post #28
ninetyninenine wrote: post #20

You know. because LLMs can only be built by corporations... but because they're so easy to build, I see the price going down massively thanks to competition. Consumers benefit because all the companies are trying to out run each other.

And then they all go out of business, since models cost a fortune to build, and their fan club is left staring at their computers trying to remember how to do anything without getting it served on a silver plate.

I expect they don't go out of business: at worst they don't start their next training run quite as aggressively and instead let their new very good model be profitable for a minute

Many many companies are currently thrilled to pay the current model prices for no performance improvement for 2-3 years

We still have so many features to build on top of current capabilities

Re: OpenAI dropped the price of o3 by 80%

#186

Post by SlowTao »

ToucanLoucan wrote: post #77
coffeecoders wrote: post #51

Despite the popular take that LLMs have no moat and are burning cash, I find OpenAI's situation really promising. Just yesterday, they reported an annualized revenue run rate of 10B. Their last funding round in March valued them at 300B. Despite losing 5B last year, they are growing really fast - 30x revenue with over 500M active users. It reminds me a lot of Uber in its earlier years—fast growth, heavy investment, b…

I mean sure, it's very promising if OpenAI's future is your only metric. It gets notably darker if you look at the broader picture of ChatGPT (and company)'s impact on our society. * We have people uploading tons of zero-effort slop pieces to all manner of online storefronts, and making people less likely to buy overall because they assume everything is AI now * We have an uncomfortable community of, to be blunt, act…

Yes but in a typical western business sense they are merely optimizing for user engadgement and profits. What happens to society a decade from now because of all the slop being produced, that is not their concern. Facebook is just about connecting friends right, totally wont become a series of information moats and bubbles controlled by the algorithms...

A great communicator on the risks of AI being to heavily intergrated into society is Zak Stein. As someone who works in education, they are see first hand how people are becoming dependent on this stuff rather than any kind of self improvement. The people who are just handing over all their thinking to the machine. It is very bizarre and I am seeing it in my personal experience a lot more over the last few months.

Re: OpenAI dropped the price of o3 by 80%

#188

Post by marsten »

bitpush wrote: post #62
coffeecoders wrote: post #51

Despite the popular take that LLMs have no moat and are burning cash, I find OpenAI's situation really promising. Just yesterday, they reported an annualized revenue run rate of 10B. Their last funding round in March valued them at 300B. Despite losing 5B last year, they are growing really fast - 30x revenue with over 500M active users. It reminds me a lot of Uber in its earlier years—fast growth, heavy investment, b…

The problem is your costs also scale with revenue. Ideally you want to have control costs as you scale (the first you build is expensive, but as you make more your costs come down). For OpenAI, the more people use the product, the same you spend on compute unless they can supplement it with another ways of generating revenue. I dont unfortunately think OpenAI will be able to hit sustained profitability (see Netflix f…

You raise a good point that this isn't a low marginal cost business like software, telecom, or (most of) the web. Efficiency will be a big advantage for companies that can achieve it, in part because it will let them scale to new AI use cases.

With the race to get new models out the door, I doubt any of these companies have done much to optimize cost so far. Google is a partial exception – they began developing the TPU ten years ago and the rest of their infrastructure has been optimized over the years to serve computationally expensive products (search, gmail, youtube, etc.).

Re: OpenAI dropped the price of o3 by 80%

#189

Post by piskov »

bearjaws wrote: post #179
BeetleB wrote: post #160

Why does OpenAI require me to verify my "organization" (which requires my state issued ID) to use o3?

Prevent Deepseek R2 being trained on it

If only there were people with multiple passports or, I don’t know, Kyrgyzstan.

How exactly will passport check prevent any training?

At most this will block API access to your average Ivan, not a state actor

Re: OpenAI dropped the price of o3 by 80%

#190

Post by whiplash451 »

smelendez wrote: post #153
Magmalgebra wrote: post #136

Earlier quoted context omitted.

Anyone concerned about cost should remember that those costs are dropping exponenentially. Similarly, nearly all AI products but especially OpenAI are heavily _under_ monetized. OpenAI is an excellent personal shopper - the ad revenue that could be generated from that rivals Facebook or Google.

It wouldn't surprise me if they try, but ironically if GPT is a good personal shopper, it might make it harder to monetize with ads because people will trust the bot's organic responses more than the ads. You could override its suggestions with paid ones, or nerf the bot's shopping abilities so it doesn't overshadow the sponsors, but that will destroy trust in the product in a very competitive industry. You could put…

Alternative: let users reduce their monthly bill by accepting a sponsored answer with a dedicated button in the UI

(with many potential variants)

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