alt Hacker News> AI in particular doesn't have a high requirement at the consumer side. Everyone already has everything they need to use it.
That isn’t actually true though, right now everyone has a hard dependency on a cloud service. That is currently sold to them at deep discount by companies that are losing billions.
When the market eventually corrects it’ll be interesting to see how much AI ends up costing. At the very least it will be comparable to the broadband internet connection you mentioned. Possibly a whole lot more.
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Is it actually being sold at a steep discount? Anthropic CEO has stated they have high margins on inference, so training is the big cost center.
>That is currently sold to them at deep discount by companies that are losing billions.
They're not losing billions on inference, they're losing billions in the arms race of training.
>That isn’t actually true though, right now everyone has a hard dependency on a cloud service. That is currently sold to them at deep discount by companies that are losing billions.
Isn't that a huge red flag? If customers are being given this product at a discount and it still isn't showing a positive ROI for them, what makes people think it will improve once we're charged full price?