• TachyonTele@lemm.ee
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    13 hours ago

    Altman has since said the company is losing money on its $200-per-month Pro subscriptions, which offer limitless access to its most recent model, OpenAI o1, and to its video generator, Sora AI. “People use it much more than we expected,” he wrote in a post on X.

    It’s ridiculous. More people use the product, so they’re losing money? What. That’s the complete opposite of what a business is.

    Not to mention the environmental damage they’ve been doing for close to no positive results.

    • nolefan33@sh.itjust.works
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      12 hours ago

      It’s not more people using the product, it’s the limited population who are paying $200/month use it way more than they thought they would. So the costs per person paying that are going way over $200/month. Basically, they made the mistake of setting a fuck off price that was too low and a bunch of people did the math and took them up on the offer.

      • dragonfly4933@lemmy.dbzer0.com
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        10 hours ago

        If the product costs that much to run, and most users aren’t abusing their access, it’s possible the product isn’t profitable at any price that enough users are willing to pay.

        • masterspace
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          8 hours ago

          This is dumb. Moore’s law may be mostly dead, but chips are still progressing at an absurd pace. In 6 years you’ll be able to run the o1 model on a raspberry Pi with no internet access.

          • wewbull@feddit.uk
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            1 hour ago

            Nvidias latest gen looks to be 30% faster after 2 years of development with about the same power usage increase. So no reduction in Joules per GOP, just a speed increase.

            In 6 years they might go 2x the speed of today but need double the watts (to deliver the same energy in half the time).

          • dragonfly4933@lemmy.dbzer0.com
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            8 hours ago

            Maybe, but i never mentioned years into the future. Of course technology will improve. The hardware will get better and more effcient, and the algorithms and techniques will improve.

            But as it stands now, i still think what i said is true. We obviously don’t have exact numbers, so i can only speculate.

            Having lots of memory is a big part of inference, so I was going to reply to you that prices of memory stopped going down at a similar historical rate, but i found this, which is interesting

            https://ourworldindata.org/grapher/historical-cost-of-computer-memory-and-storage?time=2020..latest

            The cost when down by about 0.1x from 2000 to 2010. 2010-2020 it was only about 0.23x. 2020-2023 shows roughly another halving of the price, which is still a pretty good rate.

            The available memory is still only one part. The speed of the memory and the compute connected to it also plays a big part in how these current systems work.

    • Cruxifux@feddit.nl
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      12 hours ago

      I almost shat myself in half when I saw how much water is needed for cooling for every prompt

    • seven_phone@lemmy.world
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      13 hours ago

      Because the people that innovate do not care for business and are not good at it, but everything in this world we created has to be sold so there is always this initial mismatch before the business graduate vultures, who innovate nothing descend on it, beg control and then go way too far in the opposite direction. At that late point the only innovation will be a slightly more rounded set of icons on the website.