alt Hacker NewsI’m curious about the mental model of people who think ai is extremely subsidised. This view is strange because GLM released a few weeks ago and it is confidently better than say GPT 5.
I think you are in for a rude shock - your expectation that there will come a reckoning where people are forced to content real prices of AI.. will never happen. It won’t.
Replies
It happens because people fail to account for economies of scale. Believing everything scales linearly is major flaw in the ways most people think.
And how you do know that GLM is not subsidised? Maybe Chinese government is burning money to destroy US economy by making them lose money in AI companies that are just furnace burning dollars. Unless you have some compelling argument it is just a speculation.
Training is expensive, to keep selling tokens, they have to have the best model. They have to keep spending money on model training
A product or a platform could give them a moat, but they don't quite have that yet although I think they are looking to get there