If ONLY there was a Cheaper way to get MORE Work done with LESS Mistakes! OH WELL! Don’t forget to BUY our Products with your
Unemployment Checks!Savings!WHY aren’t people BUYING things?The research firm purchased every subscription from the two AI providers and discovered that the approximate maximum possible spend (assuming API pricing) is far larger than what users pay every month. For example, Claude Max 20x costs $200 a month, but maximizing it would cost $8,000 a month in token spend, while ChatGPT Pro 20x, which is also $200 monthly, has a maximum possible spend of around $14,000.
Ehhh…yeah, but that alone isn’t necessarily an issue. There are plenty of services that exist that rely on consumers, in aggregate, not maximizing resource usage. Residential ISPs normally oversell their service. That works because the typical user only uses a tiny fraction of their sustained maximum rate of bandwidth consumption. In theory, if a lot of users started fully saturating their lines all the time, ISPs could shift everyone to metered service, but it works well enough and enough people value not having to worry about metering more than paying the minimum per-byte cost, so the system functions.
Residential ISPs usually have a contention ratio somewhere around 30:1 to 50:1. That means that 30 to 50 customers that each have a 1Gbps connection all share 1Gbps of upstream bandwidth.
Business connections are closer to 10:1, and a leased line (dedicated circuit) is 1:1.
China isn’t allowed to use advanced expensive US models. And US nationals can’t afford advanced expensive US models so they want to use Chinese models.
What a weird situation. Huh?
An interesting side effect is that the models coming out of China are very efficient. They don’t have access to all the high-end hardware the US has, so they have to make do with what they’ve got.
