Comment by InsidiousWombat

> It's really refreshing to put some cold hard numbers on this stuff, hopefully this quells some of the "AI is unprofitable everyone is spending a dollar to make fifty cents" arguments. Amortized cost of owning a DC full of GPUs is far less than $38/card/hr

They (well, most of them) are looking at loans and debt (in plain sight and hidden) of AI companies and asking "what will pay for that", not looking at how much a GPU costs and how much tokens you can sell off it.

Just putting a model on a GPU and selling it is profitable, period.

But spending more and more money on building and running infra to build frontier models that solve smaller and smaller piece of the pie might very well be unprofitable.

Models competing with the frontier labs gets more capable every month and more and more of the tasks can be achieved without reaching for the big guns.

We might very well get to the point where AI/LLM is profitable just fine but bubble still bursts and the big frontier labs are in trouble. And frankly that would lead to far more sustainable ecosystem.