Earlier quoted context omitted.
Thanks for sharing! It's worthwhile to note that https://github.com/deepseek-ai/open-infra-index/blob/main/20... shows cost vs. theoretical income . They don't show 80% gross margins and there's probably a reason they don't share their actual gross margin. OpenAI is the easiest counterexample that proves inference is subsidized right now. They've taken $50B in investment; surpassed 400M WAUs ( https://www.reuters.com…
Thanks, I believe the API prices are not subsidized, and there's an entire section devoted to that. To recap: 1) pure compute providers (rather than companies providing both the model and the compute) can't really gain anything from subsidizing. That market is already commoditized and supply-limited. 2) there is no value to gaining paid API market share -- the market share isn't sticky, and there's no benefit to just…
1) Help me understand what you mean by “pure compute providers” here. Who are the pure compute providers and what are their financials including pricing?
2) I already responded to this - platform power is one compelling value gained from paid API market share.
3) If the frontier lab you’re talking about is DeepSeek, I’ve already responded to this as well, and you didn’t even concede the point that the 80% margin you cited is inaccurate given that it’s based on a “theoretical income”.