[toddmorey]

I know for most people that the big surprise here is sustained search ad revenue in the face of AI. But I’m super curious on margins because I thought for sure offering so much free AI inference would be so insanely expensive it harmed margins.

[halJordan]

No one is losing money on inference these days. Google's vertical integration means that they have some of the lowest inference costs in the industry in any event.

[fancyfredbot]

Microsoft recently announced changes to copilot because, apparently, it was losing money on inference.

[UltraSane]

They were charging a flat rate per query no matter how many tokens it consumed. People naturally got very good at writing prompts that used as many tokens as possible.

[kingstnap]

They were loosing money giving absurdly generous agentic usage on expensive models to people with $10 to $40 flat rate subscriptions.

They weren't selling inference.