From this article alone it should be obvious that the long-repeated myth about frontier inference being subsidized is just that: a myth.
replyIt's training and tuning new models that cost them money. And that's why they are trying to scare people into thinking AI will kill us all in the next 5 years; they want bans on the open-weight models because they know they won't be able to compete with them.
A few days ago we got the news that DeepSeek makes 38 dollars profit per card with their off peak pricing (in the inference server release discussion).
replyIf that is true, either the American labs are not optimizing correctly or they make a ton of money with inference.
DeepSeek designs models that require less hardware resources for inference.
replyYeah, the way I see it short term is take the free/subsidized tokens while we can and the further out we go the cheaper compute will get for local setups.
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