"Right now, none of the above analysis applies because demand exceeds supply for frontier models, and supply is limited by a lack of compute."
It gets particularly hairy because models themselves can tune their "token verbosity" to manufacture demand for compute. If compute was such a precious resource, you'd think we'd be complaining that the output was too terse.
The ability for a vendor to determine ex post facto how much a query costs is a similarly new economic phenomenon to zero marginal cost.
It gets particularly hairy because models themselves can tune their "token verbosity" to manufacture demand for compute. If compute was such a precious resource, you'd think we'd be complaining that the output was too terse.
The ability for a vendor to determine ex post facto how much a query costs is a similarly new economic phenomenon to zero marginal cost.