Comment by meerita
4 hours ago
OpenAI, Antrophic and others are operating with 80% margins. They can lower the prices for a long while.
4 hours ago
OpenAI, Antrophic and others are operating with 80% margins. They can lower the prices for a long while.
You probably mean they are operating with 80% margins discounting training expenses, which will continue to be pretty high for the foreseeable future.
Source?
Not a source but a comparison with a weaker non-SOTA model:
Nvidia's top AI chip Rubin sells in 72-GPU racks for about $3.5–7.8M. A rack running Xiaomi's MiMo V2.6 Pro generates roughly 150–300B tokens a day, worth about $130–260k at Xiaomi's API price. That's a payback of the infrastructure in a few weeks in theory. After a few weeks or a month, the only cost is electricity, and whatever they make after that is pure profit.
OpenAI and Anthropic are practically scamming people with the token prices.