Comment by z_rho_one
12 hours ago
If they can cut the price of Sol by 50% and the price of Luna by 80%, then the original price might have carried a massive operating margin. They might still be serving the models at a profit after these price cuts, but we will never know.
I don’t think there’s a real answer for this. Margin depends on whatever number the accounting department wants to make up.
Do you include research and training costs? Of all models or only the ones being served? What percent of the R&D budget do you allocate to inference? What about data center capacity? Do you count future commitments? All the circular financing deals? Do you count employee equity grants as costs? At what valuation?
We have a simple definition for this: COGS.
We also have another solution for "whatever accounting decides": generally accepted accounting practices. It's far from perfect, but GAAP figures are what you should be looking at; not "adjusted GAAP" or whatever invention.
OpenAI didn't cut the price of Sol by 50% like they did with Luna's 80%. Sol was unchanged. This is just a limited promo for OpenRouter non-BYOK.
Or they have gotten new asics and can do now inference way cheaper
Why would they infer faster with new shoes?
It is a well-accepted fact new shoes make you faster. Current science suggests it is due to the lighter weight from lack of dirt, though there is a competing theory which says it's an optical illusion due to the fact the pure white streaks resemble speedforce.
I'm pretty sure tokens are priced to maximize revenue, not inference profit.
I always find it funny that Japanese pensioners are probably subsidizing my tokens.
What do you mean?
SoftBank is one of the largest investors in openAI having contributed more than 30B and pledged another 30.
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