>> The companies that are entirely AI-dependent may need to raise prices dramatically as AI prices go up.
> It's not that clear. Sure, hardware prices are going up due to the extremely tight supply, but AI models are also improving quickly to the point where a cheap mid-level model today does what the frontier model did a year ago.
I agree; I got some coding value out of Qwen for $10/m (unlimited tokens); a nice harness (and some tight coding practices) lowers the distance between SOTA and 6mo second-tier models.
If I can get 80% of the way to Anthropic's or OpenAI's SOTA models using 10$/m with unlimited tokens, guess what I am going to do...
> It's not that clear. Sure, hardware prices are going up due to the extremely tight supply, but AI models are also improving quickly to the point where a cheap mid-level model today does what the frontier model did a year ago.
I agree; I got some coding value out of Qwen for $10/m (unlimited tokens); a nice harness (and some tight coding practices) lowers the distance between SOTA and 6mo second-tier models.
If I can get 80% of the way to Anthropic's or OpenAI's SOTA models using 10$/m with unlimited tokens, guess what I am going to do...