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by sfifs 24 days ago
> The frontier labs have fantastic margin on inference. You do not understand how fantastic. And they have license to change inputs at will based on profitability.

This. The gross margin on inference is at least 95% if not higher - several open weight models on my tiny consumer DGX Spark easily replace the 15 dollars a day I was paying in tokens for Claw usage with a dollar a day electricity. You add data centre overhead and depreciation, the theoretical net margin will trend lower but depreciation is always far more aggressive than actual product degradation. The old NVIDIA GPU on a 9 year old second hand gaming PC I bought still serves up a small Gemma 4 variant quite reasonably.

1 comments

To say nothing of the fact that they can just add "figure out how to change the answer to this question to benefit X" at the top of their system query.

It is baffling that any government lets either themselves or their local companies use these tools. Utterly baffling. The potential for total security compromise through these models is ... essentially 100%.

But ... it's slightly cheaper.