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by Der_Einzige 4 hours ago
Daily reminder that API pricing for both OpenAI and Anthropic is profitable today and that the cost of tokens for existing models falls sharply over time for a variety of reasons (unless we go into a far worse hardware inflationary environment than we are in today).

The only thing any of them are losing money on is the 200$ a month plans, and you betchya that they're moving as many enterprises to per token pricing as possible rapidly.

If you're not investing in these companies when they IPO and ideally before that if you are lucky enough to be rich, you deserve to not reap what you didn't sow.

2 comments

Audited figures would say otherwise.
API pricing sucks. You're gonna want to move to self-hosted LLMs if you're forced to pay API prices.