Is it just me or is the new embeddings model (v3 small) insanely cheap? It's coming out to be ~$0.02/mil tokens (if I'm mathing right), whereas other "embeddings API" services are typically charging at around $0.1/mil tokens
cheaper prices -> more usage -> larger batch sizes / better gpu utilization -> lower cost of service
Competition driving lower prices is one of the good things about business microeconomics.
I've honestly been surprised by how fast these "AIaaS" companies are competing to bring performance up and prices down. It really feels good to wake up the next morning to find out your stuff is better and cheaper automatically.
Once competition is minimized and they have monopolistic power, raise prices.
Given that comparable open-source models exist for free, it's near-impossible to exert a monopoly.