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Uber's $1,500/month AI limit is a useful signal for AI tool pricing

simonwillison.net

541–550 of 819 posts

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#541
post #283

Earlier quoted context omitted.

If those don't go the caps and coils will eventually.

those are easy and cheap to replace

Depends, the SMD caps spread across the board the tiny ones do start to fail and go out of spec over time. they are a right pain to replace and hard to spot one that has gone out of spec to cause the chip to start crashing.

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#542

Earlier quoted context omitted.

They charge the exact same prices. So many people in these comments have no idea what they're talking about. Even if they did charge less, nobody is going to deal with the latency of sending requests to China. edit: Actually American inference providers are cheaper for Chinese models. There's way more competition here because the Chinese aren't idiots and investing every last dollar they have into data centers for ll…

Can you please link me DeepSeekV4 provider that's cheaper than their official offering? And not all tasks require low latency. Also, there are a lot of competition in China. Like a lot. You might know better than me as well, but although the biggest AI-labs are based in USA, the adoption is weirdly global. Like as a general sense of what's going on - you can see AI-related ads literally everywhere in Tokyo, almost al…

Cro.ai seems to be: https://crof.ai/

Of course though they are not necessarily a viable solution for companies with security requirements etc. given it is just a single person project, but they still serve as a proof it can be done.

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#543

Earlier quoted context omitted.

those are easy and cheap to replace

Depends, the SMD caps spread across the board the tiny ones do start to fail and go out of spec over time. they are a right pain to replace and hard to spot one that has gone out of spec to cause the chip to start crashing.

Can you not just move the epxensive part (the gpu itself) to a new carrier board in that situation? Also isn't most of the cost of the GPU itself the design of the board, not actually making one, esp if you can move the heat sinks around?

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#544

Earlier quoted context omitted.

do GPU chips really depreciate physically? There are no moving parts, I dont think memory chips or GPU chips deteriorate naturally. I think its only accounting depreciation. I have been using my laptop for a decade, what is stopping datacenters from using the purchased GPU chips for a decade?

There are data centers that use and rent out 10 year old server GPUs. They can't run larger modern models. They can't run smaller models as fast as newer servers. So their remaining market is applications where customers are okay with older, smaller models and slower performance. They have to price the service lower than competitors due to the lower performance. The older GPUs are less efficient so it costs them more…

except for you know the enterprise customers who won't change their code and will pay to run old inefficent hardware just to keep from dealing with upgrades?

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#546
post #421

Earlier quoted context omitted.

It is not only for devs https://openai.com/index/codex-for-every-role-tool-workflow/

So, are companies paying that amount for people at other roles to use it?

Obviously not

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#547
post #135

Earlier quoted context omitted.

Makes me think of how my Claude.md files specifies to use the built in framework code-generators (rails). Those generators are deterministically right every time. I wonder how often the Agent actually follows the guidance. I do see them follow it when I look. But it doesn't seem so every time.

This is tricky since it can and will ignore your md directions. When possible I try to lean on tool call hooks or skills that invoke deterministic scripts. As much as you can remove the "choice" the better though still there's a lot of randomness in how reliably it invokes skills ime.

Hooks are incredibly underused by most people and are the easiest way to establish a first line of defense against bad behavior. Things like blocking tool calls that will read .env file or execute "create or replace table".

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#548

Lock-in / switching costs are increasingly concerning me. I am using Claude for a good year now and have been accumulating so much "knowledge" in there by now. If Claude became less favorable in terms of price/performance in the future, that would worry me. I've started to think about a distributed solution, where my storage is detached from the inference, but currently Claude is still the way to go for me. Wondering…

Not worried at all. Switching is trivial. Rebuilding context isn't very difficult and harnesses are a dime-a-dozen.

Re: Uber's $1,500/month AI limit is a useful signal for AI tool pricing

#550

Earlier quoted context omitted.

Companies whose main core competency is writing code were already making up a big chunk of the economy before AI. Also, less wealthy companies were constrained in their use of software by the inability to afford the salaries of talented programmers (and ripoff practices from software consulting companies who in theory could help). Lowering the cost of building software systems ought to unblock a good amount of econom…

Those companies are certainly writing more code. But It isn’t clear that they are increasing their economic productivity. It could even conceivably have the opposite effect by fueling a race to the bottom. e.g. an interesting possible canary in this coal mine is that there’s been a 200% increase in the rate of new apps appearing on Apple’s App Store, but it has not been accompanied by a 200% increase in the rate at w…

That’s great for consumers.
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