Does a GPU doing inference server enough customers for long enough to bring in enough revenue to pay for a new replacement GPU in two years (and the power/running cost of the GPU + infrastructure). That's the question you need to be asking.
If the answer is not yes, then they are making money on inference. If the answer is no, the market is going to have a bad time.
That doesn’t mean that the subscription itself is losing money. The margin on the subscription could be fine, but by using that margin to R&D the next model, the org may still be intentionally unprofitable. It’s their investment/growth strategy, not an indictment of their pricing strategy.
They have investors that paid for training of these models too. It could be argued that R&D for the next generation is a separate issue, but they need to provide a return on the R&D in this generation to stay in business.
Does a GPU doing inference server enough customers for long enough to bring in enough revenue to pay for a new replacement GPU in two years (and the power/running cost of the GPU + infrastructure). That's the question you need to be asking.
If the answer is not yes, then they are making money on inference. If the answer is no, the market is going to have a bad time.
Because they're not saying they are making a profit
That doesn’t mean that the subscription itself is losing money. The margin on the subscription could be fine, but by using that margin to R&D the next model, the org may still be intentionally unprofitable. It’s their investment/growth strategy, not an indictment of their pricing strategy.
They have investors that paid for training of these models too. It could be argued that R&D for the next generation is a separate issue, but they need to provide a return on the R&D in this generation to stay in business.
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