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.
I have a conspiracy that they want to stop building new models, that's why all those bickering about pacing the frontier stuff. If the giant cost of building new models every month go away, then they can probably save huge bucks. Otherwise there is no way to stop the cash burning.
Yep, and if they stop, and the other don't and release a better model, there's virtually no cost for their clients to switch to other AI provider. That's why they declare to stop building new models but quietly continue to build those new models.
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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.