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.
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.
I think they are just subsidizing to gain users before the IPO though, no?
That‘s my guess too. Anthropic‘s business model was abysmal already but now the IPO looks like a really bad Ponzi scheme that is guaranteed to lose your money.
You mean subsidizing even harder - there have been absolutely no technological advances that would allow for a price drop of 77%, especially with inflation calculated in. This is the equivalent of your crack dealer giving you 4 times the drugs for your money to ensure you and your whole community get hooked.
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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