alt Hacker NewsIf they can cut the price of Sol by 50% and the price of Luna by 80%, then the original price might have carried a massive operating margin. They might still be serving the models at a profit after these price cuts, but we will never know.
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I don’t think there’s a real answer for this. Margin depends on whatever number the accounting department wants to make up.
Do you include research and training costs? Of all models or only the ones being served? What percent of the R&D budget do you allocate to inference? What about data center capacity? Do you count future commitments? All the circular financing deals? Do you count employee equity grants as costs? At what valuation?
OpenAI didn't cut the price of Sol by 50% like they did with Luna's 80%. Sol was unchanged. This is just a limited promo for OpenRouter non-BYOK.
I always find it funny that Japanese pensioners are probably subsidizing my tokens.