• melfie@lemmy.zip
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    7 hours ago

    But how much is the data you’re giving them worth? The other option is don’t give them your money or your data. The Qwen 3.6 MoE model with OpenCode is running pretty well on my RTX 4060 gaming laptop. According the Codscus YouTube channel, it even runs decently in as little as 6GB of VRAM.

    • heartSagan5@lemmy.zip
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      9 hours ago

      Sounds like a trap. Big cruises are said to have buffets, but yet, they’re still floating.

    • Omgpwnies@lemmy.world
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      11 hours ago

      This is their strategy, they want people to use it, get hooked, replace parts of their day-to-day life with it, make it to difficult to “just go back”, then hit them with the actual bill.

      They won’t go bankrupt unless their backers walk, and their backers are still quite confident in this strategy… because it’s working.

  • placebo@lemmy.zip
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    12 hours ago

    I wonder what companies that have integrated AI into all their workflows and processes are planning to do when the times comes to pay real price for the tokens.

    spoiler

    Nothing. They aren’t thinking ahead.

    • melfie@lemmy.zip
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      6 hours ago

      That’s the next CEOs problem to solve while the current one is enjoying his golden parachute and sailing around the world. Right now, number is going up!

    • GenosseFlosse@feddit.org
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      10 hours ago

      The companies don’t pay the price, they just pass it on to the consumer with a markup. Right now they just try stuff out to see what people really use AI for. Eventually the “AI features” will be cut back to the parts that really make them money, once they have to pay the real price.

  • ColeSloth@discuss.tchncs.de
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    10 hours ago

    All the investors know it’s a massive money sink right now. The goal isn’t for “everyone” to get to use AI.

    It’s to get so many people used to using AI that businesses like law offices and hospitals and other corporations so ingrained and built around having AI, while leaving so many graduating college students useless without AI, that businesses will be reliant upon it, no matter what costs of it they will have to absorb.

    In five years there won’t be a $200 plan. There will be a $15,000 plan per person and businesses will pay it because they won’t be able to do well without it.

    • mynona@lemmy.world
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      12 hours ago

      I think there may also a horizontal scheme as monopolies take on a global scale. Those businesses that sell in bankruptcy due to high tech costs could be gobbled up by the biggest AI-native competition. It’s a leap but maybe in a decade your optometrist is replaced by an ai kiosk with a remote technician?

      • troglodytis@lemmy.world
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        9 hours ago

        Yeppers. Sign up for a monthly subscription with your cc, and no real way to cancel! “Unlimited”* car washes, so why would you ever cancel? You’re gonna want a clean car

    • nullroot@lemmy.world
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      17 hours ago

      If you keep opening a new private tab and starting new conversations with chatgpt, your usage including uploads is free!

      • Scrollone@feddit.it
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        10 hours ago

        Also you can just switch to any other provider when you finish your free daily quota!!

    • boonhet@sopuli.xyz
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      12 hours ago

      Quite a bit if you actually wanted to use it. Opencode offers enough usage for free that you could create full apps from it lol, caveat being that their free plan usage is being used to train the models you use. But then everyone is probably doing it on their paid plans as well.

  • rmuk@feddit.uk
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    19 hours ago

    This is just Gym Economics though, right? They work on the assumption that only a small number of their member will actually use the service heavily, but the overwhelming majority will turn up to use the treadmill a few times then never visit again.

    • SacralPlexus@lemmy.world
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      18 hours ago

      Ok but it would take 70 users paying $200 to cover the cost of $14,000. So if one person maxes out their usage, there needs to be 69 users who do not use their account at all but are still paying. And that’s just the break even point, still no profit for the AI company.

      I’m struggling to believe that many people would pay that much and then underuse the subscription. It seems far more likely to me that this pricing model isn’t sustainable.

      • Wildmimic@anarchist.nexus
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        17 hours ago

        Even worse, that calculation is based on that their API pricing is currently providing a positive margin. From what I have seen and heard at this point, API pricing is at best breaking even.

  • WildPalmTree@lemmy.world
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    11 hours ago

    The last calculation I got (from an AI) is that 1M USD performance today, in hardware, is 100k USD in a year. Make it it what you want. But this is what companies are gambling on. Users now is profit later.

  • konem@lemmy.today
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    24 hours ago

    The actual cost to OpenAI is likely much less. The number in the article is calculating the API cost that a fully maxed out subscription would incur theoretically. The API token cost, however, is far above the actual computational cost.

    • r1veRRR@feddit.org
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      12 hours ago

      The actual price is hard to really know, but I think training should also factor in. The hype of LLMs is based on the fantastical idea of continunous improvement forever, so you need to keep training. Even ignoring the hype part, you still need to retrain simply to update the data inside the LLM.

      I guess we’ll only know for sure after the crash/readjustment.

    • Wildmimic@anarchist.nexus
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      23 hours ago

      I disagree - the analysis takes as a basis a very, very generous margin of 75% on API prices. There is no way they have that much of a margin, this is wishful thinking.

      And every single user who maxes out their 200$-subscription burns more cash than they take in from 70 subscriptions that lie dormant.

      • jballs@sh.itjust.works
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        14 hours ago

        I was talking to one of our cloud architects at work yesterday. They did a test and just ran in “asdf” to a chat prompt, and were able to trace the costs. It was 12 cents.

        I could totally see AI costs getting out of control very quickly. Doing something like a Copilot formula in an Excel spreadsheet is easily going to run up hundreds of dollars of costs eventually.

      • Gladaed@feddit.org
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        22 hours ago

        It’s a 200 dollar subscribtion. Are any actual users around that can provide info on how actively they are using it? I would feel that at 200 dollars they give you loads of headroom.