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Comment by geodel

9 hours ago

Agreed.

Specially since one can pay half right now to OpenAI and sign a 12 year iron clad contract for uninterrupted service delivery of OpenAI Pro.

I think we all expect the heavy subsidized subscriptions to end or significantly increase in price at some point, but it could be years from now and I'd rather spend a similar figure on an hypotetical Mac Studio M8 Ultra, or whatever more advanced competitor that will have likley appeared by that time.

A more apples-to-apples comparison would be with API cost in OpenRouter at the same tok/s rate for the same models that you can run locally, maybe.

  • > heavy subsidized subscriptions to end

    Is there evidence that's true though? I mean gross margins on subscriptions being negative since the API is seemingly very profitable (if the price is compared with the cost of serving very large open models).

    As long as there is pressure from other providers serving cheaper models that are somewhat competitive without having to incur any of the R&D costs raising prices will be tricky.

HN always has these completely contrived counterarguments. What is actually going to realistically happen that will prevent use of an LLM provider? Did you think that the OP literally meant the 12 years or maybe it was just to show how expensive using a Mac Mini as an alternative is?

  • > how expensive using a Mac Mini as an alternative is?

    I think it goes without saying. And it is eminently evident over last couple of decades that from compute to storage to meals 3rd part providers have saved billions upon billions of dollars to enterprises and individuals alike by providing these essential services.

  • Mass revolts of the peasantry burning down data centers and cutting fiber lines.

    • Yes, it feels like that. Whereas frontier labs are pushing the frontier of human knowledge, selflessly working towards pulling humanity from dark ages. Ignorant peasants trying to burn the modern civilization down. Don't they know data centers and fiber lines are lifeline of modern economy?