> I said for a few years to many a downvote on HN, everyone wants AI, nobody wants to pay the true costs, the AI race will turn into a "race to the bottom" that is, who can give you the most compute for the lowest cost, and still remain profitable?

I keep seeing this but this line of thinking doesn't make any sense. What does it really mean?

There are expensive models that increase the probability of you doing your task under a lower cost. That means you can't use Gemma for coding your new compiler - it would just be overall costlier.

Heavier models are cheaper at more complicated tasks because they use fewer turns and fewer mistakes.

Cheaper models are more likely to be cheap at less complicated tasks. Like if you just ask Gemma "Hi" it would probably be cheaper than asking Opus.

So what does this statement really mean? People don't want to pay the extra for a more costly model? Why wouldn't you? It reduces your overall cost!