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by philistine 53 days ago
No one has yet to turn a profit from LLMs. I don't understand why we need to intently look at everybody's pricing, when the most important number is instead their losses. That is the number that tells us what they're really doing.
2 comments

Why would these 3rd-party providers be taking losses? Together, Novita, etc... are not losing money on inference services, they are profiting. You can easily do napkin math with current & last gen Nvidia cards to calculate cost to host/serve these models. I would also doubt that any 1st-party providers like OpenAI and Anthropic lose money on per token billing. There is almost undoubtedly healthy margin being made on that.
> Why would these 3rd-party providers be taking losses?

we are in market capture phase. Domestically hosted Chinese LLMs is a descent market to capture.

OpenRouter isnt turning a profit?