alt Hacker NewsAll LLM are heavily subsidized by investors. No one is paying the true cost of tokens at the moment. The rug pull is to get as many people defendant on the tool before they have to massively increase prices.
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Evidence ?
Who are these investors subsidizing random inference providers on https://openrouter.ai/ ?
as much as training might be subsidized, I don't buy that inference is, if there was no training required and labs could run their current models forever it'd be a gravy train even at current prices
I think the crux of the issue is that frontier labs do not make any financial sense. They are spending investor dollars in order to sell tokens at pennies, and then a Chinese lab can build a competing model on those pennies, and the frontier labs can't then start selling the tokens at a price where they'd actually even break even because most of the volume will then shift to those cheaper models.
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What about people who are running open models on their own GPUs? They are being subsidised too?
That's the point gp was making. If the big labs all increase prices 10x, the cost of running your own open models stays the same