Thread

1. meerita · 1790101295 · focus · HN ↗

   OpenAI, Antrophic and others are operating with 80% margins. They can lower the prices for a long while.

   1. slekker · 1790102566 · focus · HN ↗

      Source?

      1. system2 · 1790114740 · focus · HN ↗

         Not a source but a comparison with a weaker non-SOTA model:

         Nvidia's top AI chip Rubin sells in 72-GPU racks for about $3.5–7.8M. A rack running Xiaomi's MiMo V2.6 Pro generates roughly 150–300B tokens a day, worth about $130–260k at Xiaomi's API price. That's a payback of the infrastructure in a few weeks in theory. After a few weeks or a month, the only cost is electricity, and whatever they make after that is pure profit.

         OpenAI and Anthropic are practically scamming people with the token prices.

   2. thimabi · 1790103954 · focus · HN ↗

      You probably mean they are operating with 80% margins discounting training expenses, which will continue to be pretty high for the foreseeable future.

      1. wyre · 1790143718 · focus · HN ↗

         Seeing how cheaply Xiaomi was able to train Mimo 2.6 I am starting to wonder if they are greatly over-exaggerating the real training costs to increase their valuations and investments.

         1. desterothx · 1790152802 · focus · HN ↗

            that was rl, not training. its a fraction of the cost

            1. anthonyrstevens · 1790177670 · focus · HN ↗

               Don't let facts and knowledge get in the way of a good conspiracy theory!

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