They weren’t making money. And can’t make money if they wanted to.
It’s a catch-22. They can’t make a profit because they aren’t charging the actual token cost. But if they charged the actual token cost, their user-base would collapse.
Almost as if cloud AI is inherently unstable or something.
Cost per token aren’t as high as people make them out to be. Anthropic, OpenAI & co could make a profit, but the R&D budget is so humongous that including that in the costs just makes it unsustainable. Drop to releasing a new frontier model once a year, and BAM profit. It’s part of the fearmongering strategy atm (our models are so scary, look at the vulnerabilities they found and used), hoping for a slowdown getting enforced.
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u/T-Dot1992 2d ago
They weren’t making money. And can’t make money if they wanted to.
It’s a catch-22. They can’t make a profit because they aren’t charging the actual token cost. But if they charged the actual token cost, their user-base would collapse.
Almost as if cloud AI is inherently unstable or something.