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Do you have recommended reading here? My understanding is that the subs are super subsidised indeed. But the actual API calls (which is what many enterprise customers are paying) don't immediately feel very subsidised to me. Are you saying AWS/GOOG are providing Anthropic with subsidised capacity?

I assume the plan is to get enough users that it gets embedded into so many things they essentially get a government bail out over and over.

Compare the cost of Microsoft’s Arm accelerator MAIA (coming up on gen 3) with general purpose inferencing infrastructure and you see why the compute cost of tokens is going down (but token usage is going up in probably a mirror image of the cost graph)

Once we’ve invaded Wakanda, we’ll have the tech. Don’t you worry!

This argument (I refuse to call it "line of thinking" because it is anything but) drives me bananas. Nobody who understands the first thing about how this house of investment cards is built would make such a statement.

The AI is going to invent cold fusion, and that will solve both the power and cooling issues!

AI is venture capital's last and most desperate attempt to get Moore's Law back after Dennard Scaling effectively killed its performance gains. It's a desperate attempt to undo dark silicon. And that happened 20 years ago so it's past necrophilia into necromancy

I think you might be just a hair too young to viscerally remember the dot com bubble bursting, but this is exactly what the run-up to that felt like, with people saying “hang on, how does pets dot com sell 40lb bags of cat food at invoice price with free shipping and expect to make a profit?”

Can't talk about the economics of the whole thing but using the free Claude tokens via the web interface (no API, no agents, etc.) let me do in two months what before I couldn't do in 5 years, so it has been quite useful to me. Open-source projects, though, so I don't have any cost/benefit analysis.

What’s wild to me is that OpenAI thinks they’re going to churn most of their $20/mo subscriptions into $8/mo subscriptions by the end of 2027. Do businesses usually plan to scale by moving most of their customers to lower-revenue users?

Ed Zitron, noted hater, has been yelling to anyone who will listen about this for ages. If Ed is correct, none of the maths makes any sense. www.wheresyoured.at/ais-economic...

Elect me and I’ll cut token prices by 600%!

In my field it is faster, better and (so far) cheaper than anything else before. We just structure data with it and it seems to have solved many parts of NLP. Smaller models are enough for this and it produces ROI in BPA. So, even without being a "fan" we have to use it.

It's not sustainable, unless you keep stealing money from the public purse which is what these techbros are doing with their alliance with Trump. Even that model is ultimately not sustainable but they will bleed us and planet dry until they get there (or we get there first with the guillotines).

Can't it be the inverse, API is insanely overpriced because it's targeted at? Not defending AI companies or LLMs, fuck Sam Altman, I just didn't understand why you concluded that the API price is the fair one, and not the other way around?

They don't want that, THEY want to control ALL OF THE DATA. If your data is stored offsite, it essentially belongs to whatever company is storing it.