Comment by twoodfin
5 hours ago
The basic business math is (to start) software companies realizing that spending $10k, $20k, $50k (more ?) per year, per developer for current models at current token rates might not be particularly insane, given the value return.
Models are likely going to keep getting better, and as costs go down, demand is likely to rise faster.
> as costs go down
Huh? Why would that happen? Indications are that costs will likely go up, especially if currently vendors are selling tokens at a loss.
The main operational expense of a million LLM tokens is pennies of electricity.
Even if you generously depreciate the GPU and other hardware, it’s hard to believe inference at scale in April 2026 isn’t highly profitable.