alt Hacker NewsMy long-term prediction for the sector is that frontier models will be so expensive that they will only be available for grant-funded projects at research institutions, like supercomputer clusters were 25 years ago.
My long-term prediction for the sector is that frontier models will be so expensive that they will only be available for grant-funded projects at research institutions, like supercomputer clusters were 25 years ago.
Why? Well it depends, most evidence is suggesting that Anthropic and OpenAI are making a lot of money on inference so the question is whether its more profitable for them to sell 100X tokens for Y, or 1X tokens for 100Y. In most industries with high fixed costs and low variable costs and unlimited scalability (like LLM providers) the first option ends up being much more profitable