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Anthropic/OpenAI may be spending more than $1000 for every $100 you pay them

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Re: Anthropic/OpenAI may be spending more than $1000 for every $100 you pay them

#2
If this is the true cost of AI then the future might be dedicated extension cards for computers that hardcode entire models + weights.

Downside: you need to buy a new one for each model.

Upside: insanely fast inference and zero subscription cost, only one time purchase cost.

Once a certain open source model gets good enough this might become viable.

Right now the landscape is still shifting too fast.

State of the art models might remain on subscription, expensive and might be used by large companies only.

State of the art companies might also create their own hardware with hard-baked weights on chip that they don't release to the public, as it might just make more financial sense long term once they "stabilize" on a certain model.

Re: Anthropic/OpenAI may be spending more than $1000 for every $100 you pay them

#3
post #2

If this is the true cost of AI then the future might be dedicated extension cards for computers that hardcode entire models + weights. Downside: you need to buy a new one for each model. Upside: insanely fast inference and zero subscription cost, only one time purchase cost. Once a certain open source model gets good enough this might become viable. Right now the landscape is still shifting too fast. State of the art…

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Re: Anthropic/OpenAI may be spending more than $1000 for every $100 you pay them

#5

Hang on to your wallet, you ain't seen nothing yet. The true cost of AI won't be revealed until after a large portion of the customer base has become "hooked" on it.

I'm not sure I agree. Beyond the Anthropic world, we see

1. The GitHub Copilot pricing change that started a week ago already change buying decisions.

2. Small name open weight providers selling at what I assume, and hear through grape vine, is a profitable place.

Claude is over priced for what you get, and if headline is true, expensive to run. I do wonder if their API pricing is profitable. That's the word on the street about Big AI, they are making money on the PayGo

Re: Anthropic/OpenAI may be spending more than $1000 for every $100 you pay them

#7

Hang on to your wallet, you ain't seen nothing yet. The true cost of AI won't be revealed until after a large portion of the customer base has become "hooked" on it.

That + when retail investors are the ones holding the bag.

Re: Anthropic/OpenAI may be spending more than $1000 for every $100 you pay them

#9
post #2

If this is the true cost of AI then the future might be dedicated extension cards for computers that hardcode entire models + weights. Downside: you need to buy a new one for each model. Upside: insanely fast inference and zero subscription cost, only one time purchase cost. Once a certain open source model gets good enough this might become viable. Right now the landscape is still shifting too fast. State of the art…

Yes this is what I"m waiting for. I do hope these cards will not come with any kind of vendor locking though.
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