alt Hacker NewsMy understanding is that all the big AI companies are currently offering services at a loss, doing the classic Silicon Valley playbook of burning investor cache to get big, and then hope to make a profit later. So any service you depend on could crash out of the race, and if one emerges as a victorious monopoly and you rely on them, they can charge you almost whatever they like.
To my mind, the 'only just started' argument is wearing off. It's software, it moves fast anyway, and all the giants of the tech world have been feverishly throwing money at AI for the last couple of years. I don't buy that we're still just at the beginning of some huge exponential improvement.
My understanding is they make a loss overall due to the spending on training new models, that the API costs are profit making if considered in isolation. That said, this is based on guestimates based on hosting costs of open-weight models, owing to a lack of financial transparancey everywhere for the secret-weights models.