[cowl]

then you are misunderstaing the downvoting. it's not that the fact that they are burning money. it's the fact that this cost today 20k but that is not the real cost if you factor the it is losing money on this price.

So Tomorrow when this "startup" will need to come out of their money burning phase, like every startup has to sooner or later, that cost will increase, because there is no other monetising avenue, at least not for anthropic that "wilL never use ads".

at 20k this "might" be a reasonable cost for "the project", at 200k it might not.

[brookst]

That would be insightful if the cost of inference weren’t declining at roughly 90% per year. Source: https://epoch.ai/data-insights/llm-inference-price-trends

[EddieRingle]

According to that article, the data they analyzed was API prices from LLM providers, not their actual cost to perform the inference. From that perspective, it's entirely possible to make "the cost of inference" appear to decline by simply subsidizing it more. The authors even hint at the same possibility in the overview:

> Note that while the data insight provides some commentary on what factors drive these price drops, we did not explicitly model these factors. Reduced profit margins may explain some of the drops in price, but we didn’t find clear evidence for this.

[aurareturn]

Source that they’re losing money on each token?