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The price of AI is crashing faster than the rate of Moore's Law — intelligence costs are in freefall, outpacing comparative technologies like compute, DNA sequencing, and lithium batteries (epoch.ai)
submitted 1 day ago by to c/technology@lemmy.world
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cross-posted from: https://piefed.world/c/tech/p/1434965/the-price-of-ai-is-crashing-faster-than-the-rate-of-moore-s-law-report-suggests-intellig

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[–] 11 points 1 day ago* (1 child)

It doesn't matter what tricks they supposedly use afterwards, the data centets that are built need to run successfully or the bubble pops and then those companies will fall like lead. In other words for those data centers to be successfull the entire real economy has to spend crazy amounts of money on stuff that needs crazy amounts of compute.

Open AI and Anthropic would really need some good business numbers, right now. The claim that they are just deliberately making their business case much worse than it is, is insane.

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  • [–] 5 points 1 day ago* (last edited 1 day ago)

    The inference cost doesn’t actually drop in reality.

    My comment was about this which is just completely wrong.

    OpenAI is the scummiest company on earth but everyone is ready to believe them when they say shit like "our 20$ plan lets you run up the equivalent of a billion dollars in API fees. Giggles. It's a good plan for you but not for us ;) "

    The main thing bringing up costs is stuff like Sam Altman spending all the "inference" money on raw wafers just to strangle consumer GPU sales.

    It's not a good business model because of how cheap inference actually is. Once you have open models and the moat is broken, the only thing left to do is regulatory capture, upping the demand for the hardware and little charades like these.

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