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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

12 Sept

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.

Tim Purdum

@timpurdum.dev

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.

12/9/26, 8:17 pm0 reposts5 likes

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.