I wonder how sustainable the free model is for ai startups. This shows how you can switch easily from one to another. Maybe we are in the golden days like back when Uber was cheap…
Token costs are not zero when you’re running local models, because you paid for the hardware, and you can’t scale inference indefinitely without paying for more hardware.
Ok, but running a 11B model gets things 60% of the time right and consumes maximum of electricity of your machine. Not sure if that makes you product the best. Further video generation is very compute intensive. I guess price will decrease over time but the technical advance will allways be for the smarter model
For computing, silicon has become cheaper and more efficient over time
I expect a race to the bottom and then some stabilization, much like we have seen in general cloud computing, and have seen with token prices