Comment by mixmastamyk
10 hours ago
The big providers are losing on average tens of billions a year on these services, so yes prices must go up. Even Moore’s won’t help in the medium-term due to shortages and difficulty/reluctance to vastly increase capacity.
You can buy tokens on OpenRouter right now from companies who serve tokens as a business and who are not selling at a loss.
The frontier labs have very high prices for inference. The prices are actually going down, not up.
I thought the discussion was about "frontier labs" in the cloud versus open at home.
Others running open models in the cloud is a nice third alternative, but not a solution for those that need frontier models, which I believe continue to need training as well as inference. These are currently heavily subsidized and hardware constrained several years out.