I think this is a minor speed bump and VC’s believe that cost of inference will decrease over time and this is a gold rush to grab market share while cost of inference declines.
I don’t think they got it right and the market share and usage grew faster than inference dropped, but inference costs will clearly drop and these companies will eventually be very profitable.
Reality is that startups like this assume moore’s law will drop the cost over time and arrange their business around where they expect costs to be and not where costs currently are.
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