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I think it signals that they’ve been so successful that they need to ensure there is some direct financial back pressure on heavy users to ensure that their heavy token use is actually economically productive. That’s not a bad thing. Giving away stuff for free - or even apparently for free - encourages a poor distribution of value.

by lelanthran2 hours ago|

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> I think it signals that they’ve been so successful that they need to ensure there is some direct financial back pressure on heavy users to ensure that their heavy token use is actually economically productive.

Jesus, the spin on this message is making me dizzy.

They finally try to stop running at a loss, and you see that as "they've been so successful"?

Here's how I see it: they all ran out of money trying to build a moat, and now realise that they are commodity sellers. What sort of profit do you think they need to make per token at current usage (which is served at below cost)?

How are they going to get there when less-highly-capitalised providers are already getting popular?

by muyuu1 hours ago|

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I don't think there has been any exponential in terms on inference costs in the last couple of years. In fact, they have worsened as the same relevant hardware is more expensive and so is energy - and to top it off, to stay SotA companies are using larger models with higher running costs. But for some reason people are conflating the improvements in models with the cost of inference.

by zozbot2341 hours ago|

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> this is indicative to me that the exponential is slowing down

I've also heard that, we're near the end of the exponential.

by vardalab2 hours ago|

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What makes you think that progress has stopped? Anecdotally I personally seem to think that it's accelerated, I am having conversations with ambitious non tech people and they now seem to be excited and are staying up late learning about cli and github. They seem to have moved beyond lovable and are actually trying to embed some agents in their small businesses, etc.

by lelanthran1 hours ago|

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> They seem to have moved beyond lovable and are actually trying to embed some agents in their small businesses, etc.

That's the problem - these small businesses are writign code, models from last year are good enough for them, and as a small business they can easily shell out for hardware to self-host.

The minute businesses take-up AI for their business processed, the will to buy each employee a subscription is going to go the way of the dodo.