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The End of Moore's Law for AI? Gemini Flash Offers a Warning

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113 points sethkim | 1 comments | 03 Jul 25 17:34 UTC | HN request time: 0.216s | source
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guluarte ◴[03 Jul 25 18:24 UTC] No.44457853[source]▶
they are doing the we work approach, gain customers at all costs even if that means losing money.
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FirmwareBurner ◴[03 Jul 25 18:29 UTC] No.44457901[source]▶
Aren't all LLMs loosing money at this point?
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simonw ◴[03 Jul 25 18:31 UTC] No.44457920[source]▶
I don't believe that's true on inference - I think most if not all of the major providers are selling inference at a (likely very small) margin over what it costs to serve them (hardware + energy).

They likely lose money when you take into account the capital cost of training the model itself, but that cost is at least fixed: once it's trained you can serve traffic from it for as long as you chose to keep the model running in production.

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1. guluarte ◴[04 Jul 25 17:09 UTC] No.44466189[source]▶
Some companies like Google, Facebook, Microsoft, and OpenAI are definitely losing money providing free inference to millions of users daily. Companies where most users are using their API, like Anthropic, are probably seeing good margins since most of their users are paying users.