Man, this hits close to home from watching AI spend at work. We’ve been seeing the exact same pattern that played out with cloud for years - everything starts cheap, you wire it into everything, and then once you can’t rip it out, the meter starts spinning. The scary part is how fast it’s happening with reasoning models though. Every safeguard the labs wanted, they just bought with more thinking - hallucinations, bad outputs, staying inside the guidelines, the answer was always more reasoning. And nobody was watching the meter, because the model chews through all of it every single time, and goes through rule olympics just to spit out something usable. But what happens when that thinking costs more than the answer is worth? At least with cloud you could theoretically move back on-prem if you had the expertise. With this though… the model cannot reduce its thinking, so it goes through the whole chain on every turn, and we’re paying for it, every user, every subscriber, every API bill. How do we stop paying for all that thinking? The AI token econmics are finally hitting us. submitted by /u/TeaTraditional3642
Originally posted by u/TeaTraditional3642 on r/ArtificialInteligence
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I think everyone is getting concerned with the costs of AI, and I’m not just talking about financial costs. I get the game all the major labs are playing, push semi-functional products so they can afford to build their super compute and train the next model which will hopefully deliver on their promises. It’s one of the biggest gambles in modern human history now with how leveraged investors and even entire nation states are.