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Argument was that open ai cannot be profitable with this. But sure, use it while you can.
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You can make the other argument that China subsidizes the price and that they can't be profitable at this pricing level. From an industrial strategy standpoint, they already do this for many other industries with huge subsidized state loans.

So we can go round and round on this, each with our made-up objections about how it's temporary or unrealistic or impossible or whatever, or we can just accept the prices as listed and use that to guide our economic decisions.

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Private companies cannot play that game too long. Profit from current state of AI is a mirage and sooner or later stuff will hit the fan.
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Just look at the prices that inference providers charge for small models. The argument that these unit economics are negative is trivial to disprove.

DeepInfra sells DS v4-flash at 0.08 in, $0.18 out. Gemma4 they sell for $0.07 in, $0.34 out. OpenAI's price for luna is $0.20 in, $1.20 out.

Why would you assume OpenAI is somehow uniquely incompetent at making small, fast models? And that they're worse at serving it than DeepInfra? Any observer can see they are making money here.

I never understand why people who are convinced there is a big con just don't check market prices and see if there's money to be made.

That doesn't mean their business is great -- they're losing tons of money, but it's because they spend too much on fixed costs, and they can't stop spending money on training next generation models with no end in sight, not because the inference is margin negative, which is a flimsy idea that just clouds the actual business issue.

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Didn't OpenCode CTO state they could replicate deepseek pricing on rented hardware?
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There's a difference between the Deepseek.com provider lunch pricing and the pricing every other provider is doing now.

Right now DS4-Pro-0813 is available from multiple providers for $1.32/million input tokens[1].

It's pretty easy to work backwards from B200 and electricity prices and see this is profitable even without the heavy serving optimization these providers are doing[1.5].

The OpenCode CEO said: "inference is very profitable and probably a good opportunity to understand some basic business math"[2] and "the inference we do is already profitable and that's with some middlemen involved"[3]

If at this point people don't believe inference can be profitable, and providers can turn the prices up and down to choose exactly how profitable they make it I don't know what to say.

[1] https://openrouter.ai/deepseek/deepseek-v4-pro-0813#provider...

[1.5] https://www.seangoedecke.com/ai-inference-is-obviously-profi...

[2] https://x.com/thdxr/status/2042277156940587469?lang=en

[3] https://x.com/thdxr/status/2042614323344818520

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