Comment by cmiles8

This is the opening salvos of an all out token price war.

With models a commodity at this point there isn’t much leverage for the big labs to keep their pricing anywhere near where it’s at. And that’s at the worst possible time as they need to be dramatically raising prices to have a viable business model.

Expect pricing to rapidly fall towards the underlying cost of compute and as players get really desperate we’ll likely see inference at less than the cost of compute as the market starts to rationalize and squeeze out weaker players who’s only play left will be to be the cheapest option in town.

The AI bubble is just waiting for the first player to scream mercy and cut capex as they simply can’t afford to throw more cash on the burning pile. That will be the trigger that implodes this bubble.