The assumption here is that this is a positive thing.
But this very well could end up being a major negative long term by increasing the cost per user, reducing margins.
More usage = more cost = less profit.
It's not obvious that more usage is good. It's only good if revenue per user increases more than cost does. I'm skeptical about that.
That's why it's so important for these labs that they're selling API tokens for more than the compute+energy costs needed to generate them.
Every indicator I've seen is that they do have a positive margin on that. If they don't, they're screwed.
Dario telling Dwarkesh three months ago that they have a margin on inference: https://www.dwarkesh.com/p/dario-amodei-2?timestamp=3528.0
They had all the incentive in the world to say "I'm not going to talk about that."
Simple test: can they get their hands on a data center contracts and financials?
Search isn’t anywhere near as high profile as the profitability of AI inference, and yet, even aspects of the Search org were walled off from the rest of the company such that other employees couldn’t see what we see.
It might be worth keeping it secret from the staff if they were running at a loss.
The customers of these tokens need to see returns on their projects that exceed the cost of financing.
Laying people off only goes so far.
If enough said firms don’t see enough value given the price of frontiers they will cancel and consume open source. This is the risk the frontier labs are exposed to.