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Apple Silicon costs more than OpenRouter

williamangel.net

221–230 of 322 posts

Re: Apple Silicon costs more than OpenRouter

#221
post #102

Earlier quoted context omitted.

They're responding to the people doing things like buying the most expensive Mac they can find specifically to do local inference for their AI agents. Some do it to have control over their ability to use AI. Some do it because they think it will be cheaper to not have to pay a SaaS to generate tokens for them. But for those interested in the latter case, it seems like it's not actually cheaper after all, at least at…

It's worth paying a premium for the privacy (assuming that llama.cpp and ollama aren't sending my sessions back to the cloud regardless...), and for the concerns about not getting a surprise bill.

> not getting a surprise bill.

Correct me if I'm wrong, but I believe this is a feature that only Google has figured out how to implement. All of the other pay-as-you-go token services have a cap you can set, some by monthly spending, some with API key resolution, others by how much you put into the account. I use many, and if configured with auto-purchase disabled, it's not possible to have a "surprise" bill (except for Google!)

Re: Apple Silicon costs more than OpenRouter

#222
post #180

Earlier quoted context omitted.

You also need to pay close attention to rent vs purchase ratios. A lot of cities are cheap to rent but expensive to buy (eg beijing 10 years ago).

Key word being „ago“.

I’m covering my bases because Chinese real estate has been volatile recently and I’m not sure where the market is at now. It could be that renting is still way cheaper than buying, I just don’t have any direct experience to back that up. If I bought while I was living in Beijing I would probably be underwater with my investment right now, renting for 9 years was the right call and my rent was pretty affordable anyways.

Re: Apple Silicon costs more than OpenRouter

#223

Earlier quoted context omitted.

Your post makes sense if you bought the hardware for other reasons, and maybe run models occasionally as a novelty. That isn't the case for many, though, and there is a whole social media space where people are hyping up the latest homebrew options for running models, believing it frees them from the yoke of big AI. Millions of people are buying big $ maxed-out hardware like the Mac Studios or DGX specifically to run…

Let's not get ahead of ourselves. Millions , really? I can believe there are a lot of enthusiasts doing this, but "millions" needs a citation.

This is HN; it has probably never occurred to half the people here that the average person even in first world countries doesn't even have the financial capacity to make an impulse five-figure USD purchase, even if on credit.

Re: Apple Silicon costs more than OpenRouter

#224

This isn't a good analysis, and it's because it keeps rounding everything up. He rounds up the cost of electricity by 10%. He has a range of power use, takes the high end (which is 2x the low end) and multiplies it by the inflated electricity cost. But then they talk about using a newly purchased Mac to do the inference, running at full capacity, 24/7. Why would you do that? Apple silicon is fast but the author point…

Honestly, I don't even see my Macbook Pro costing me anywhere near as much as using any of these AI services, but maybe I'm just not seeing a significant increase in my power bill to notice? I am the power user who uses Claude Max pretty much all the time to prototype ideas, and build things I actually use, and has given me a lot of value, I work full time and have a family to raise and care for, my free coding time is mostly limited to ideas. Now I can draft a plan with detail, review the code, run the code, test it, and use software custom tailored to my needs.

Re: Apple Silicon costs more than OpenRouter

#225
post #177
post #59

Frontier AI companies are selling at a loss. Excusing everything else that u/bastawhiz said[0]; the obvious fact here is that Claude, OpenAI, Gemini et al. are quite literally burning through 100's of billions of dollars and selling it back to you for pennies on the dollar in the hopes that they get to be the only one left. If I spend $10 growing Oranges and sell them to you for $1; then of course it's more expensive…

This is not true. API tokens are not sold at a loss, and hardware gets more efficient over time, so serving inference on the same model gets cheaper. LLAMA 3.1 405B parameters was $6/$12/M tokens in 2024, but in 2026 that same model is $3/$3/M tokens. The most intelligent model at a given time is much larger than the previous, which is why token costs for GPT5.5 are higher than 5.4. But you should expect that 2 years…

So are they going to stop at GPT 5.5? This analysis only seems to be counting inference cost when the majority of the cost, and why they are burning through money, is the training.

Re: Apple Silicon costs more than OpenRouter

#227
post #59

Frontier AI companies are selling at a loss. Excusing everything else that u/bastawhiz said[0]; the obvious fact here is that Claude, OpenAI, Gemini et al. are quite literally burning through 100's of billions of dollars and selling it back to you for pennies on the dollar in the hopes that they get to be the only one left. If I spend $10 growing Oranges and sell them to you for $1; then of course it's more expensive…

> Frontier AI companies are selling at a loss. There are huge economies to be had by batching requests and using lots of RAM for MoE (sparse models). You can't achieve that efficiency at batch size 1 on a single node.

Inference isn't the problem.

Re: Apple Silicon costs more than OpenRouter

#229

This isn't a good analysis, and it's because it keeps rounding everything up. He rounds up the cost of electricity by 10%. He has a range of power use, takes the high end (which is 2x the low end) and multiplies it by the inflated electricity cost. But then they talk about using a newly purchased Mac to do the inference, running at full capacity, 24/7. Why would you do that? Apple silicon is fast but the author point…

> Yeah, data centers don't pay residential electricity rates.

There are 2 caveats here:

Some places have higher prices for industrial than residential power as residential one might be subsidied by govt.

And DC also pay for cooling, which residential will only effectively pay if they have AC and is hot outside. So power rates are some multiply of industrial pricing.

Re: Apple Silicon costs more than OpenRouter

#230
post #59

Frontier AI companies are selling at a loss. Excusing everything else that u/bastawhiz said[0]; the obvious fact here is that Claude, OpenAI, Gemini et al. are quite literally burning through 100's of billions of dollars and selling it back to you for pennies on the dollar in the hopes that they get to be the only one left. If I spend $10 growing Oranges and sell them to you for $1; then of course it's more expensive…

That seems unlikely. There are many providers for open models on openrouter. It seems unlikely that they are throwing money away for each token they sell. Also, there a good technical reasons for inference being much more efficient at scale.

It is hard for the engineer to grasp the lengths VCs will go to to grab market and mind share.
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