The cost of LLMs have gone down over 30 times in the last 1-2 years. At what point would you think it is economically feasible? I think this a question to ask so that we can tackle the fundamental economics of LLMs.
This is what I want to challenge. At what point do you think people will pay more than it costs? Lets try to come up with a number because the price of LLMs have dropped more than 30 times in the last 2 years.
It may continue to drop and AI companies will continue to be in loss because the new things will be unlocked due to new efficiences and the same debate over LLM economics will continue.
I think it is already profitable and people are more than willing to pay for the actual costs.
If people are willing to pay for the costs, where are the profitable AI companies?
At the moment everyone is trying their best to implement it, but it remains to be clear if it actually increases a company's profitability. Time will tell, and I think there are a lot of things obfuscating the reality right now that the market will eventually make clear.
Additionally the economics of training new models may not work out, another detail that's currently obfuscated by venture capital footing the bill.