> In order to break even they would have to minimize the operating costs (by throttling, maiming models etc.) and/or increase prices. This would be the reality check.
Is that true? Are they operating inference at a loss or are they incurring losses entirely on R&D? I guess we'll probably never know, but I wouldn't take as a given that inference is operating at a loss.
Is that true? Are they operating inference at a loss or are they incurring losses entirely on R&D? I guess we'll probably never know, but I wouldn't take as a given that inference is operating at a loss.
I found this: https://semianalysis.com/2023/02/09/the-inference-cost-of-se...
which estimates that it costs $250M/year to operate ChatGPT. If even remotely true $10B in revenue on $250M of COGS would be a great business.