In terms of API costs they're about right, 10% of weekly usage on a 5x sub is roughly $40 (for Astra). Chinese models cost roughly half as much (and have fewer refusals).
Subs have insane value because large companies cannot use the subscription model. They are loss leaders and are often used for passion projects & startups (where the juicy data is).
Ah and OAI stopped offering the 20x sub as of yesterday.
Not really. It is very hard and expensive to get these oil well pumping again. That is why we had negative oil prices during covid. Plus, when we are talking about the Gulf states, they have extremely low production cost. The discount would be against world prices, not production cost.
But I don't see how. AI is going to be a commodity in short order and best case the US will be a temporary leader in the supply of tokens. Meanwhile AI is going to destroy much of the Service and Software industry that make up most of the US economy. And the US is betting every last cent to bring about this future. It does make sense for Trump since this might be a sugar high that lasts till the end of his term.
In USA there is surprisingly little state involvement in the whole llm mania. Who needs the state with 800 lbs gorillas like Google, Amazon, Nvidia, etc
In China, it is the principal obsession of the entire communist party which eg funds the whole infrastructure without a single NIMBY peep.
The strange emphasis in China on humanoid robotic constructions is due to the CCP realization that with the cataclysmic fertility collapse they will increasingly have no one to rule.
LLMs give most people on this planet the possibility of an affordable genius level assistant. Compared to that, those Dollar numbers on some networks that might be wiped out with the next financial crisis are meaningless.
Is that really a problem? Since there will be lots of evidence and criminals tend to fuck up quite a bit this should be well documented. Unless you think that those election fraudsters that buy tons of votes from civilians have better opsec than drug dealers and the like.
They are very good at that.
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