31–40 of 61 posts
This is because the users are training the product. They need training data, so they sell inference at the price of power.
I wonder how much of DeepSeek and Xiaomi's pricing cuts can be traced back to cheap energy in China.
I wonder how much of DeepSeek and Xiaomi's pricing cuts can be traced back to cheap energy in China.
it's not that huge of a deal if you compare commercial costs in china and cheapest us states, and electricity is only one of the factors. The real reason: anthropic + openai just cut the reasoning output to prevent distill, and hence you see the rise of chinese models to establish contracts globally .
how will that help them working around the distill issue?
Earlier quoted context omitted.
In China the state and corporations can blend so it's difficult to tell the difference between the two. It is known for government sponsored dumping to meet some state goal or another.
This runs counter to the last 50 years of American propaganda espousing the inefficiency of government. If the Chinese government can just throw money at industries and have them flourish, why can't other governments?
I wonder how much of DeepSeek and Xiaomi's pricing cuts can be traced back to cheap energy in China.
This is because the users are training the product. They need training data, so they sell inference at the price of power.
Is this training data even valuable? Usually AI data annotators get paid to write LLM responses, but here all they'd be getting is a bunch of user queries.
This has been the strategy for months now
Earlier quoted context omitted.
In China the state and corporations can blend so it's difficult to tell the difference between the two. It is known for government sponsored dumping to meet some state goal or another.
This runs counter to the last 50 years of American propaganda espousing the inefficiency of government. If the Chinese government can just throw money at industries and have them flourish, why can't other governments?
One possibility that seems likely to me: it takes longer than a single election cycle for an investment like that to bear fruit. And you have to be willing to admit that some bets the state places will lose. This is harder in the kind of democracy and political climate that the US currently has. China's government has more continuity of leadership and a strong emphasis on stability that seem hard to achieve in the US without a lot more political cohesion and more nuanced opposition than the two-party system currently affords.
If we could achieve it, though, it'd be awesome. Some "best of both worlds" stuff.
I wonder how much of DeepSeek and Xiaomi's pricing cuts can be traced back to cheap energy in China.
Energy is like 10-20% of the cost of AI. The rest is mostly hardware depreciation.
Earlier quoted context omitted.
it's not that huge of a deal if you compare commercial costs in china and cheapest us states, and electricity is only one of the factors. The real reason: anthropic + openai just cut the reasoning output to prevent distill, and hence you see the rise of chinese models to establish contracts globally .
“and hence you see the rise of chinese models to establish contracts globally” how will that help them working around the distill issue?