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I hear this analogy (selling a dollar for 10ct) but it's unclear to me how we can cleanly map intelligence to cents.

If the LLM was GPT-1, most people wouldn't even use it for free. So clearly there's another axis here?

The analogy is implying that the revenue generated by providers is dwarfed by the total expenditure on inference & continuously training the next best model. These providers have large operational costs and the presumption is that they are providing a dollar ~worth~ of product for 10 cents. Worth being calculable based on the actual capital & operational costs of providing the service.

anthropic models are profitable fully loaded (rev - inference cost - training cost)

According to who? Remember that they told us gpt 3 was "too dangerous to release"

Until their finances are open you can't trust anything they say

Yea I don't know if that's true or not. I'm just saying that is what they are getting at.

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