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LLMs are cheap

snellman.net

191–200 of 319 posts

Re: LLMs are cheap

#191

Earlier quoted context omitted.

Yeah, sure, please elaborate on how providers such as Fireworks, DeepInfra, Chutes are going to "make it harder to switch."

I'm talking about openAI, anthropic, Google, etc. They'll offer consumer and enterprise integrations that will only work with their models.

yes. And they will try both carrots and sticks.

The carrots are already visible - think abstractions like "projects" in ChatGPT.

Re: LLMs are cheap

#192

Earlier quoted context omitted.

> Most people don’t use an ad blocker. I mean, they should. Anyone on this site most certainly should. The LLM UX is going to rapidly converge with the search UX as soon as these companies run out of investor funds to burn. It's already starting; https://www.axios.com/2024/12/03/openai-ads-chatgpt . What then?

> I mean, they should. Yes, they should. They don’t. There’s really no point talking about how the web could have almost as good UX as LLMs if users did things that they do not do . Users are still getting shitty UX from the web. > The LLM UX is going to rapidly converge with the search UX as soon as these companies run out of investor funds to burn. The point of the article is that these companies can be profitable…

Well, enjoy the 15 minutes.

Re: LLMs are cheap

#193

Earlier quoted context omitted.

I just tried that search on Google. The first thing I saw was the AI summary. Underneath that was a third-party site. Underneath that was “People also ask” with five different questions. And then underneath that was the link to the American Airlines site. I followed the line to the official site. I was presented with a “We care about your privacy” consent screen, with four categories. The first category, “Strictly ne…

> Websites have been choosing shitty UX for decades at this point. The web is so polluted with crap and obstacles it’s ridiculous. Nobody seems to care any more. Now LLMs have come along that will just give you the info straight away without any fuss, so of course people are going to prefer them. Do you honestly believe LLMs aren't gonna get sponsored answers/ads and "helpful" UI elements that boost their profits?

[deleted]

Re: LLMs are cheap

#194

Earlier quoted context omitted.

That search query brings up https://www.aa.com/i18n/travel-info/baggage/carry-on-baggage... for the first result, which says "The total size of your carry-on, including the handles and wheels, cannot exceed 22 x 14 x 9 inches (56 x 36 x 23 cm) and must fit in the sizer at the airport." What benefit did the LLM add here, if you still had to vet the sources?

> What benefit did the LLM add here Its answer was not buried in ads for suitcases, hotels, car rentals, and restaurants.

https://imgur.com/a/pRUGgRx

Looks fine to me.

Re: LLMs are cheap

#195
post #24

You can't compare an API that is profitable (search) to an API that is likely a loss-leader to grab market share (hosted LLM cloud models). Sure there might not be any analysis that proves that they subsidized, but you also don't have any evidence that they are profitable. All the data points we have today show that companies are spending an insane amount of capex on gaining AI dominance without the revenue to achiev…

Please read the DeepSeek analysis of their API service (linked in this article): they have 500% profit margin and they are cheaper than any of the US companies serving the same model. It is conceivable that the API service of OpenAI or Anthropic have much higher profit margins yet. (GPUs are generally much more cost effective and energy efficient than CPU if the solution maps to both architectures. Anthropic certainl…

That claim actually gives me pause. It reminds me of an idea from Zero to One by Peter Thiel - that real monopolies like to appear as a small fish in a very big pond, while tiny players try to appear as a monopoly.

So when I see a company bragging about "500% profitability," I can’t help but wonder if they’re even profitable at all.

Re: LLMs are cheap

#196

Earlier quoted context omitted.

That search query brings up https://www.aa.com/i18n/travel-info/baggage/carry-on-baggage... for the first result, which says "The total size of your carry-on, including the handles and wheels, cannot exceed 22 x 14 x 9 inches (56 x 36 x 23 cm) and must fit in the sizer at the airport." What benefit did the LLM add here, if you still had to vet the sources?

I didn't have to accept cookies or dismiss any offers.

You absolutely have to accept cookies to use the major LLM providers.

Offers are coming: https://www.axios.com/2024/12/03/openai-ads-chatgpt

Re: LLMs are cheap

#197

Earlier quoted context omitted.

I didn't have to accept cookies or dismiss any offers.

You absolutely have to accept cookies to use the major LLM providers. Offers are coming: https://www.axios.com/2024/12/03/openai-ads-chatgpt

I had to accept cookies once, not each time I look up a recipe or a new piece of information. That's comparable to having to install a browser.

I also didn't have to scan a hostile list of websites fighting for my attention to pick the correct one. It does that for me.

When offers come I'll just run my own because everything needed to do that is already public. I'll never go back to the hell built by SEO and dark UX for anything.

Re: LLMs are cheap

#198

Earlier quoted context omitted.

Just wait till there are ads for free users, which is going to happen. Depending on how insidious these ads are, they could be extremely profitable too, like recommending products and services directly in context.

Why do you equate contextual with insidious?

The OP is not equating contextual with insidious. They're pointing out, correctly, that contextual ads can be insidious. And if they're profitable, they probably will be.

A lot of the companies offering LLM services are in a race gain market share and build expertise. Right now, they can burn through millions of dollars of VC money, with the expectation that they'll turn a profit at some point in the future. If that profit comes from advertising, and critically, if users don't expect advertising in their free LLMs, because they didn't see ads in generated output in the past, that will be very insidious.

Re: LLMs are cheap

#199

Earlier quoted context omitted.

Just wait till there are ads for free users, which is going to happen. Depending on how insidious these ads are, they could be extremely profitable too, like recommending products and services directly in context.

Why do you equate contextual with insidious?

Because then the AI isn't working for you anymore, it's working for the advertisers. Which isn't necessarily bad, but we can be pretty confident that the AI will not be upfront about this, and instead try to act like it's working for you.

Re: LLMs are cheap

#200

Earlier quoted context omitted.

You absolutely have to accept cookies to use the major LLM providers. Offers are coming: https://www.axios.com/2024/12/03/openai-ads-chatgpt

I had to accept cookies once, not each time I look up a recipe or a new piece of information. That's comparable to having to install a browser. I also didn't have to scan a hostile list of websites fighting for my attention to pick the correct one. It does that for me. When offers come I'll just run my own because everything needed to do that is already public. I'll never go back to the hell built by SEO and dark UX…

> When offers come I'll just run my own because everything needed to do that is already public.

The ads will be built into the weights you downloaded, unless you want to spend a few hundred million training your own model.

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