> They aren't going away but for some they may become prohibitively expensive after all the subsidies end.
Even if inference was subsidized (afaik it isn't when paying through API calls, subscription plans indeed might have losses for heavy users, but that's how any subscription model typically work, it can still be profitable overall).
Models are still improving/getting cheaper, so that seems unlikely.
There is no evidence for this. The claims that API is "profitable on inference" are all hearsay. Despite the fact that any AI executive could immediately dismiss the misconception by merely making a public statement beholden to SEC regulation, they don't.
> Models are still improving/getting cheaper
The diminishing returns have set in for quality, and for a while now that increased quality has come at the cost of massive increases in token burn, it's not getting cheaper.
Worse yet, we're in an energy crisis. Iran has threatened to strike critical oil infrastructure, and repairs would take years.
AI is going to get significantly more expensive, soon.
It probably is still subsidized, just not as much. We won't know if these APIs are profitable unless these companies go public, and till then it's safe to bet these APIs are underpriced to win the market share.
Third-party AI inference with open models is widely available and cheap. You're paying as much as proprietary mini-models or even less for something far more capable, and that without any subsidies (other than the underlying capex and expense for training the model itself).
Anthropic has shared that API inference has a ~60% margin. OpenAI's margin might be slightly lower since they price aggressively but I would be surprised if it was much different.
Yeah but the argument people make is that when the music stops cost of inference goes through the roof.
I could imagine that when the music stops, advancement of new frontier models slows or stops, but that doesn't remove any curent capabilities.
(And to be fair the way we duplicate efforts on building new frontier models looks indeed wasteful. Tho maybe we reach a point later where progress is no longer started from scratch)
Quite a few swiss residents would be happy to have this (or at least some more cost control).
There's mandatory health insurance with preexisting condition coverage, but it's not free (tho it's partially tax supported, depending on location and income).
This project has nothing to do with bug reports... it's an opt-in tool for reviewing proposed changes that kernel developers can decide to use (if they find it useful).
I was recently debugging an app double-free segfault on my android 13 samsung galaxy A51 phone, and the internal stack trace pointed to jemalloc function calls (je_free).
> instead of getting good at making A LOT of something really cheaply?
also you'd want to maximize dual usage (civil/military) of components so that your production capacity can be easily switched back and forth more on demand.
(Otherwise you just end up a stockpile of obsolete drones/weapons)
Instead of this we have anti dual-use policies, especially in semiconductor. Any chip a fab produces need hefty paper work to prove it cannot be used for military. This is due to the military-industrial complex lobby. They don't want cheap competition.
Yes, but that's assuming that there should be a free electricity market.
The fundamental issue with electricity markets is that they cannot rely on any signal other than the electricity price to control whether a given plant will be running at a given time or not.
I think a real alternative would be to set-up an entity charged with negotiating prices with the electricity producers (which would also be a sort of partial reversal on the whole market thing in a lot of countries).
Even if inference was subsidized (afaik it isn't when paying through API calls, subscription plans indeed might have losses for heavy users, but that's how any subscription model typically work, it can still be profitable overall).
Models are still improving/getting cheaper, so that seems unlikely.
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