this post was submitted on 01 Nov 2026
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Isn't that bad for the big US AI companies? The only thing they are doing that actually makes money is selling their inference service on their private models and they need to make a much larger profit on it to even start paying off the interest on the debt they have accrued on infrastructure and training costs.
This is in my opinion why there is all the scare mongering to try and lock out open weight competition to prevent decoupling inference from the models being run. Otherwise inference just becomes a low margin utility service and the big tech companies that have bet big on AI lose big.
Yes, it is. Their costs aren't going down, only what they can charge and they struggle to be profitable already now. Their only hope is outlawing open models from frontier applications and coding.