alt Hacker NewsIt probably is still subsidized, just not as much. We won't know if these APIs are profitable unless these companies go public, and till then it's safe to bet these APIs are underpriced to win the market share.
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CuriouslyC • yesterday at 1:15 PM
Anthropic has shared that API inference has a ~60% margin. OpenAI's margin might be slightly lower since they price aggressively but I would be surprised if it was much different.
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throwthrowuknow • yesterday at 1:12 PM
Then we’ll likely know by the end of this year.
Third-party AI inference with open models is widely available and cheap. You're paying as much as proprietary mini-models or even less for something far more capable, and that without any subsidies (other than the underlying capex and expense for training the model itself).