Earlier quoted context omitted.
The cost per token served has been falling steadily over the past few years across basically all of the providers. OpenAI dropped the price they charged for o3 to 1/5th of what it was in June last year thanks to "engineers optimizing inferencing", and plenty of other providers have found cost savings too. Turns out there was a lot of low-hanging fruit in terms of inference optimization that hadn't been plucked yet. >…
I have not see any reporting or evidence at all that Anthropic or OpenAI is able to make money on inference yet. > Turns out there was a lot of low-hanging fruit in terms of inference optimization that hadn't been plucked yet. That does not mean the frontier labs are pricing their APIs to cover their costs yet. It can both be true that it has gotten cheaper for them to provide inference and that they still are subsid…
[1] https://epochai.substack.com/p/can-ai-companies-become-profi...