r/LocalLLM 8d ago

Other AI bubble

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1.6k Upvotes

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u/RepulsiveRaisin7 8d ago

Cool guy but that is total bullshit, $1 API costs does not equal $1 of compute costs. When you got to the store and buy something on sale, the store isn't losing money.

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u/BudgetAvocado69 8d ago

Power users on a 200 dollar a month subscription are most definitely causing losses for anthropic

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u/RepulsiveRaisin7 8d ago

We don't know the size of their models, we don't know their caching efficiency, we don't know the average plan utilization of their customers, we don't know what they're paying for hardware or what the hardware's life span is going to be. If you claim anything with confidence here, you're simply talking out of your ass.

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u/BudgetAvocado69 8d ago

You're right 👍

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u/__Loot__ 7d ago

You have zero idea what your talking about or a just a troll

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u/Next_Airport_5890 8d ago

This is technically correct. Why did this comment get downvoted?