101–110 of 436 posts
Affordability is not the current goal. Vendor lock-in is the current goal. Consumer prices are a drop in the bucket comparatively.
Cheap, but gave them a massive user base they can claim is using AI
The article fails to mention DeepSeek, Alibaba, Qwen, Xiaomi, MiMo, z.ai, or GLM. It's hard to take such an article seriously that doesn't do this. (Our monthly total spend is around $180 with a team of 6, about half technical; our biggest line items are for American models or subscriptions which we probably will be planning to get rid of.) And then remarks like this: Anthropic, OpenAI and Microsoft have all now tran…
I think the author is referring to enterprise customers. You aren't the "customer" in this case; you're the bait. How do you know that the other models you are referring to aren't subsidized?
Earlier quoted context omitted.
Once your dependent, they can drive up the price just because. It doesn't need to be for existential reasons. This is the crisis point for vibe-coders. A developer can go back to writing code by hand, as horrible as that might sound. Someone who hasn't learned to code but builds with AI can't go back. They either pay or they stop. That will be an painful choice whichever way you fall.
There are already open weight models out there that are capable and cheap enough for a lot of coding tasks. Not as good as Claude but not far from it. There's no going back to pre-AI coding.
My take is that Anthropic and OpenAI simply are NOT competing on price. 2 big players are often not enough to create tension on price. Chinese models and open model providers are, indeed, competing on price, and the difference shows.
My take is that Anthropic and OpenAI simply are NOT competing on price. 2 big players are often not enough to create tension on price. Chinese models and open model providers are, indeed, competing on price, and the difference shows.
Btw, some Chinese corporates have already seen this and increased their price. Zhipu AI & Tencent for example. Alibaba, Baidu, and Tencent also announced multiple price increases for their AI services.
The math doesn’t add up and the wheels are starting to come off the bus. The conversation in a lot of wealth management offices has shifted dramatically in the last few month from “how do I get in on this AI thing?” to “how do I protect my assets when this AI stuff blows up.” There’s little question now if this will all implode, just when and who’s going to lose their shirt and be left without chairs when the music s…
Assuming the analysis is right, and most (or all) of these AI companies will default on their debts, what consequences might that have?
All depends on who is holding the bag, and how big the bag is.
The math doesn’t add up and the wheels are starting to come off the bus. The conversation in a lot of wealth management offices has shifted dramatically in the last few month from “how do I get in on this AI thing?” to “how do I protect my assets when this AI stuff blows up.” There’s little question now if this will all implode, just when and who’s going to lose their shirt and be left without chairs when the music s…
Assuming the analysis is right, and most (or all) of these AI companies will default on their debts, what consequences might that have?
> Zitron's numbers don't tell us the real cost of generating tokens but, subject to the assumption that the platforms are not subsidizing the token price, that means Anthropic is subsidizing their enterprise customers by up to 40 times, and OpenAI up to 70 times Neither Anthropic nor OpenAI are subsidizing enterprise customers. Neither Anthropic nor OpenAI allow Business nor Enterprise customers access to the high va…
> it may underestimate the inference margins of Ant/OAI's API pricing. If true then why are neither Anthropic or OpenAI dropping their API pricing to gain market share when both are clearly doing all sorts of political and PR maneuvering to compete in a cutthroat market? Since they aren't dropping the API usage prices (and are in fact raising them in a lot of subtle ways) then one of these options almost has to be tr…
The market for open weight model hosting gives you an idea of the profitable price floor, it's pretty clear there's markup baked into OAI/Anthropic's APIs.