alt Hacker NewsThis is market introductory pricing that hasn't factored in cost recovery. Most of it has been run on early investment with the assumption they will recover costs in the long run. The prices are subsidized across the board and they will need to go up signficantly to recover them.
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pqtyw • yesterday at 6:49 PM
Yeah, that's not going to work if you can get e.g. 80% of value by using 10-20x or more cheaper open models. At some point it would just make sense for large companies to rent compute and deploy their version of DeepSeek or whatever (if they don't trust Chinese providers)
Assuming this were accurate, then presumably the AI companies would be betting that inference costs come down before the bill is due - I don't see enterprises being willing to absorb another ~10x price increase for tokens (as they've just done going from subscription prices to per-token pricing)