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abhinaitoday at 7:20 AM1 replyview on HN

The author doesn't seem to realize that a healthy margin has been built into the inference pricing. Once low cost open source inference providers get their hands on powerful frontier level models, there would be a severe margin compression for OpenAI and Anthropic.

Source: https://martinalderson.com/posts/the-upcoming-ai-margin-coll...


Replies

BoorishBearstoday at 7:25 AM

Why do you think an inference provider competing for the same compute as OpenAI and Anthropic gives up those margins rather than giving a modest discount over the frontier for near-frontier performance?