Comment by consumer451
18 hours ago
This is a super interesting dynamic! The CCP is really good at subsidizing and flooding global markets, but in the end, it takes power to generate tokens.
In my Uber comparison, it was physical hardware on location... taxis, but this is not the case with token delivery.
This is such a complex situation in that regard, however, once the market settles and monopolies are created, eventually the price will be what market can bear. Will that actually create an increase in gross planet product, or will the SOTA token providers just eat up the existing gross planet product, with no increase?
I suppose whoever has the cheapest electricity will win this race to the bottom? But... will that ever increase global product?
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Upon reflection, the comment above was likely influenced by this truly amazing quote from Satya Nadella's interview on the Dwarkesh podcast. This might be one of the most enlightened things that I have ever heard in regard to modern times:
> Us self-claiming some AGI milestone, that's just nonsensical benchmark hacking to me. The real benchmark is: the world growing at 10%.
https://www.dwarkesh.com/p/satya-nadella#:~:text=Us%20self%2...
With optimizations and new hardware, power is almost a negligible cost that $5/month would be sufficient for all users, contrary to people's belief. You can get 5.5M tokens/s/MW[1] for kimi k2(=20M/KWH=181M tokens/$) which is 400x cheaper than current pricing even if you exclude architecture/model improvements. The thing is currently Nvidia is swallowing up a massive revenue which China could possible solve by investing in R and D.
[1]: https://developer-blogs.nvidia.com/wp-content/uploads/2026/0...