Comment by msejas
3 hours ago
Isn't OpenAI burning billions and have billions more spending commitments? If they managed to downsize so much the cost they should have kept the price the same and become profitable, really weird move, unsure what led to this.
More than $650B due 2030. I don’t understand how it makes any sense that they reduce the price so much, unless they expect seriously such a massive saving and increase in demand from their latest improvements?
Slower grow, or even shrink in usage? Right now, the promise of a future "everyone will use our models and pay whatever we ask" is what keeps $$ flowing towards OpenAI.
Supply demand curve is a thing. Cutting price on something does not mean you are going to make less money.
But they still have to cover compute cost, and they already committed to more than $650B in infra expenses for 2035
Why assume they are not already making up the compute costs for smaller models?
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