alt Hacker NewsThose developer quotes are tough to read. Rate limits are going to hit like a truck when the labs eventually need to make a profit.
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simonw • yesterday at 11:17 PM
At this point the AI labs would pretty much have to form an illegal price fixing cartel in order to jack the prices up, they've been competing to drive down prices for so long.
They'd have to get the Chinese AI labs to go along with that price fixing too.
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azan_ • today at 4:57 AM
Keep in mind that they make large profit on inference. Not enough to make up for losses on training but it won’t be a problem for Chinese labs which will just steal their weights.
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For the thousandth time - they. make. a. profit. Inference margin is over 60%, today.
They are spending that money training ever-larger models, so they are cashflow negative, but under almost any sane GAAP treatment that does not allow one to write down all R&D upfront (capital costs of model training), they are profitable.
Should this matter to you? Only if you're making financial decisions that assume that somehow one day the "jig will be up" - i.e. please don't short these stocks when they float, or at least do so very judiciously.