Continuing with your skepticism:
reply> Stories are circulating of companies surprised at how expensive their LLM bills are becoming from usage by their staff
> Enterprise customers are now paying API prices
How long before enterprise customers start to question the bill? Anthropic goes from not making money to doing pricing shakeup, and now they are making money and the biggest spenders are shocked at prices.
Seems like things are still very uncertain.
Usage costs will come down with better hardware. Hardware is improving rapidly each generation.
replyThat trend held true for the past three years, but it doesn't feel as safe to me now.
replyBut memory costs are going way up. And both OpenAI and Anthropic bumped up the price of their frontier models in April.
Algorithms are also improving. I believe it's very unlikely for these two improvements together to not result in one to two orders of magnitude cheaper cost per "intelligence". Of course, that might just make use cases that are too expensive today viable and thereby increase usage further.
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