Post

Slow down frontier model development. Bring open weights to current frontier. Build out local inference providers, stabilize hardware prices, focus on cost and token throughput for a bit. Get our software updated to handle what's being thrown at us. I would not mind spending a beat on distribution.

Honza Dvorsky

@czechboy0.dev

Do you realize how massively tokens are subsidized today? So many people got used to buying $40 bills for $1, built workflows around them, and now ask for "someone" to "bring the cost down". However, the bad news that serving LLMs is deeply, structurally unprofitable. And is only getting worse.

12/9/26, 7:18 pm0 reposts0 likes

Tim Purdum

@timpurdum.dev

12 Sept

The latest open weight flash models provide similar value at costs low enough to be comparable to the subsidized frontier subscriptions, so I don't think we're going to see costs go up. If anything, this is only the beginning of the commoditization.

Honza Dvorsky

@czechboy0.dev

13 Sept

No, *prices* can't go up, but *costs* are still so high that there isn't a single company providing inference at a profit. And since people got used to what they get for a dollar, roughly, the AI companies cannot actually raise prices to stop losing money. They're screwed.

Honza Dvorsky

@czechboy0.dev

12 Sept

The first "L" in "LLM"s is the problem. This is not a small issue that can be tweaked. The whole idea of building massive models that both train on the history of the Roman Empire and also on a bunch of stolen JavaScript code is absurd. Without massive VCs subsidies, this would have never happened

Honza Dvorsky

@czechboy0.dev

12 Sept

Language models will stay around in various forms, but LLMs can't be made sustainable or profitable. The AI leaders are just keeping the bubble alive to maximize their net worth. But they know already that what they're doing today will never be sustainable or profitable.