[Leynos]

Not that I give much credence to anything Zitron says, but the amount of inference you can get on a £200 a month OpenAI or Anthropic subscription is easily an order of magnitude more than what you'd get paying the same amount at subscription rate.

Although I would also point out that OpenAI recently tripled the amount of Codex inference you get per month for £200 (and to head off the suggestion, this is distinct from their current 2x promotion on £100/month plans)

[o10449366]

Yeah, I'm sure the numbers are a bit inflated compared to API, but with my Claude $200/month subscription I've supposedly consumed 12,160,410,828 tokens in April for a cost of $22,733.03.

[Leynos]

Is that taking cache hits into account?

[o10449366]

Cache create is 202,746,985 and cache read is 11,998,411,722 from claude-code-monitor

[Leynos]

I make that $7000 :o

[PunchyHamster]

> Not that I give much credence to anything Zitron says, but the amount of inference you can get on a £200 a month OpenAI or Anthropic subscription is easily an order of magnitude more than what you'd get paying the same amount at subscription rate.

Neither of those is how much it actually costs the company selling the service. And I have feeling they are running at loss here so the play is "get everything possible using LLMs then jack up the pricing"

[semiquaver]

There have been plenty of studies which indicate that inference considered by itself is almost certainly quite profitable at all the frontier labs. The problem is amortizing the cost of all the expensive training runs required to train new models into the revenue stream.

[pkaye]

Does that mean those running the open models are highly profitable since they don't have to do any training?

[polski-g]

Yes obviously, otherwise they wouldn't be doing it; they'd just go back to mining shitcoins.

[semiquaver]

I don’t know about highly since they have no moat even more than Antrhropic and OpenAI have no moat. Anyone with a few hundred thousand dollars or sufficient free GPUs can compete with them. So running an open model should earn a market-rate margin.

[paulddraper]

*more than what you'd get paying the same amount at usage rate.

[Leynos]

Yes, thanks. Too late to edit now, sadly.