Comment by miki123211
3 hours ago
It's funny how quickly we went from "the greedy US companies are subsidizing prices to keep competitors out of the market" to "the greedy US companies are overcharging because they are greedy."
3 hours ago
It's funny how quickly we went from "the greedy US companies are subsidizing prices to keep competitors out of the market" to "the greedy US companies are overcharging because they are greedy."
They are subsidizing the non-API use cases and overcharging on the API use cases.
It's interesting if they need to cut off their subscriptions to be able to compete in API prices. Very interesting...
I'm not happy about it, but API prices seem actually reasonable if you compare it to free-market pure inference providers. They need to buy the same power, same hardware as the big labs without needing any R&D. This means that the coding plans must be subsidized. I'm not happy about that, because it means we'll be paying more, until hardware and maybe power drops in price, which, if we look at e.g. the housing market, may never happen during my lifetime.
No, almost everyone has been in agreement that they’re subsidizing subscriptions, but there have literally been dozens (hundreds?) of threads on HN in the past 12 months with people vehemently arguing that API prices are subsidized.
I think both can be true - they're losing money on the API and they're still charging too much. Which is really where the music stops for American AI investment. I also use K3 now and its perfectly capable for the development work I'm doing. I don't shed any tears for OpenAI or Anthropic.
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