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by mjrpes 436 days ago
> Historically... this tends to work out. Reminds me of Gmail initially allowing massive inbox. YouTube doing free hosting. All the various untethered LAMP hosting...

One difference I see: storage capacity and compute performance aren't increasing like they had in the past, so companies can't rely on these costs to dramatically drop in the future to offset bleeding cash initially to gain market share.
3 comments
drakenot 436 days ago
The cost of inference[0] for the same quality has been dropping by nearly 10x year over year. I’m not sure when that trend will slow down, but there’s still been a lot of low-hanging fruit around algorithmic efficiency.

[0] https://www.reddit.com/r/LocalLLaMA/comments/1gpr2p4/llms_co...

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antisthenes 436 days ago
> One difference I see: storage capacity and compute performance aren't increasing like they had in the past

Companies stopped increasing free storage tiers ~10 years ago or even more, while the cost of storage has dropped significantly in that time period.

Both hard drives and SSDs.

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netcan 436 days ago
Sure. I agree that usage/demand is likely to outgrow compute performance.

But.. a lot of the other dynamics that make this game winnable still stand. Maybe they will need to go with a meter eventually or some other pricing structure... but it will work out.

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