So it’s no secret that the frontier labs have priced access to their models so aggressively that they’re barely making any money on them. But their capex for r&d is absolutely huge to build the next generation of models. Now in a normal world you’d either A increase the price you charge for access to the models to cover your r&d costs or B reduce your capex to try and recoup some of your existing investment. AI companies are being prevented from doing either. They can’t increase their pricing because due to the nature of the models there’s absolutely no lock in, it’s really easy to switch, potentially even to open source in certain circumanstances. And burn rate is only accelerating because they’re locked in an arms race with each other and the chinese firms. If they for example stop releasing updates to their models for a while and focus on making the existing models cheaper then everyone will just switch when someone does release a better model. Are they just going to keep sinking in more and more cash in the hope they hit on AGI/ASI/Self improvement? submitted by /u/Dredgefort
Originally posted by u/Dredgefort on r/ArtificialInteligence
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