Comment by mixmastamyk
11 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.
They said "equivalent level model". It's reasonable to assume that open source models in 12 months will be just as good as frontier models today.