alt Hacker News> I have been telling folks for the last 3 years that the price of AI compute
What does that even mean ?
The cost of AI itself (tokens/$ for a given level of intelligence) has been falling rapidly, and shows no sign of stopping.
Replies
ShinyLeftPad • today at 4:12 PM
they operate at a loss (they pretend to profit by excluding key costs in financial reports). they won't do it forever.
What is the cost of AI tokens? You can't just calculate cost of inference. There is a cost to train, there is a cost for staff to build it all, the money investors provided for it all. When you run a business, all those costs must be recovered. Sure, it takes $2 in material cost to make a pizza, but what's the cost of pizza? You have to take into account, energy, rent, staff, insurance, and profit too. Tokens/$ is subsidized if you are talking about APIs