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Comment by mcny

3 days ago

Because from what I understand, the whole premise of billionaires giving AI all their money is

1. AI succeeds and this success is defined by they will be able to raise prices really high

2. AI fails and receives a bailout

But if there are alternatives I can run locally, they can't raise prices as high because at some point I'd rather run stuff locally even if not state of the art. Like personally, USD 200 a month is already too expensive if you ask me.

And the prices can only go up, right?

not really, in a scenario where demand dies down surplus gpu compute becomes so under-utilized we would see it drop even lower I would think. Prices will go up of course if we keep seeing more tokens needed to solve problems, and demand keeps going up with no increase in efficiency or capacity, which is again not what we're seeing really.