alt Hacker NewsStrangely: "Searches are, unexpectedly, more expensive for us to serve than AI. A user that does only traditional searches (not using Assistant) will cost more on our end than someone using AI + search."
https://kagifeedback.org/d/1338-provide-a-plan-without-ai-fu...
Replies
luke5441 • yesterday at 1:32 PM
How can this be true? Should I not worry about margin compression at Google due to heavy cap-ex requirements anymore? Is this temporary because Kagi got a good deal for tokens? Are they paying through their noses for the Google search API calls? I don't get it.
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EbNar • yesterday at 12:57 PM
Yeah, that reply is a mildly infuriating, in view of what they're planning.
> A user that does only traditional searches (not using Assistant) will cost more on our end than someone using AI + search.
Unless I am missing something, that appears to be a mathematically impossible claim. They are saying A > A+B, where both A and B are positive values. I suppose it could be that non-AI users do more total searches, and the extras add up. Hmm.