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Comment by akersten

17 hours ago

> The subscription prices can not be financially sustainable. There is no way that is remotely close to the actual cost of running.

It's completely unclear to me why this is the conclusion everyone jumps to instead of "holy cow they are milking it on API pricing."

I mean, have you ever run a local model? How much electricity did it cost you to get 1,000 tokens out of it? Like a fairy-dust of a cent?

The AI labs' cost is CapEx. Marginal cost of tokens is zero.