Rob NapierMar 18, 2024

This really drives home something about LLM systems. They’re very expensive to run, both to train and per-query, and hard to make cheaper. I expect them to get more expensive to run. They’re currently sold at a big loss to establish monopoly power and then raise prices dramatically. That’s the *stated* business plan.

If you’re building your business to rely on LLM, you need to factor in what you‘ll do when they pivot to making money, or they pull back because they can’t.
https://geeknews.chat/@theregister/112116266764229145

The Register (@[email protected])

Microsoft promises Copilot will be a 'moneymaker' in the long term Exec tells investors to 'temper' expectations as mission to convince customers of price tag continues Microsoft is asking investors to "temper" expectations for quick financial returns from Copilot amid efforts to convince customers that paying "substantial" sums each month is actually worth it.… #theregister #IT https://go.theregister.com/feed/www.theregister.com/2024/03/18/microsoft_copilot_moneymaker/

Geek News Central Mastodon Chat
Show threadBrandon Horst
@cocoaphony The free llm apps (copilot, chatgpt) are operating at a loss, and are absolutely going to see some nasty monetization coming soon. But I’m not so sure if that’s true for the APIs. OpenAI keeps lowering their prices despite relatively little competition.
Mar 18, 2024 at 11:55amWeb
Show threadRob NapierMar 18, 2024
@brandonhorst this article is about the paid integrations with Office products, not ChatGPT. If the APIs were profitable, Microsoft wouldn’t be begging their investors for patience. Cutting API prices absent competitors is not evidence that the queries are cheaper. It’s evidence they’re having trouble finding customers at the higher price, and they’re willing to take losses to build market share.
Show threadBrandon HorstMar 18, 2024
@cocoaphony Yeah that’s definitely possible. No doubt this stuff is already becoming commoditized