Technology

This only can mean that they do not actually need more compute for the current situation, while subsidizing their prices hard on top of that fact. If compute were scarce, prices would hold up or rise at least with the inflation rate. Compare this to the amount of datacenters being built, see the discrepancy, realize that at least 200 billion dollars worth of GPUs are just sitting in warehouses doing nothing outside of losing value, and realize that this bubble will crash harder than any of the previous ones. The Dot-Com crash will look like peanuts compared to this.

Edit: This also means the NeoClouds like CoreWeave are doomed. They have no way to pay back the debt they have taken on if noone is interested in renting compute. (I would even go as far as to say that they are doomed either way. I have the hypothesis that this is intended - when CoreWeave goes inevitably bankrupt, NVidia will snag up as much as possible of their own inventory back for a discount, so they can sell it off a second time.)

Price drop caused in majority by open weight models. No wonder Altman wants regulations against open models and to take everybody's home computer's RAM.

We used to give our cycles for free to help probing the universe and understanding the building blocks of life

Nowadays it's about selling them to assholes ruining the world.

Well, kinda glad it ends up not profitable enough for them.

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.

A global distributed AI network using currently unused local RAM, should put Altman’s concerns about efficiently to bed. I’m sure he’s absolutely delighted.

I love how we went from 1. AI will make your computer obsolete to 2. rent out your computer to AI to 3. sorry, AI doesn’t pay enough to rent your computer. That’s an entire tech boom and bust cycle squeezed into one Mac’s idle time.

I think they are just subsidizing to gain users before the IPO though, no?

Cheaper Tokens is a good thing. Maybe not for people who want to sell them to you, but if you buy them, that is awesome