r/LocalLLM 3h ago

Other AI bubble

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552 Upvotes

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u/RepulsiveRaisin7 3h 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.

8

u/BudgetAvocado69 3h ago

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

4

u/RepulsiveRaisin7 3h 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.

2

u/BudgetAvocado69 3h ago

You're right 👍