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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 "embedding
by janejeon 3y ago
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
- minimaxir 3y agoCompetition driving lower prices is one of the good things about business microeconomics.
- janejeon 3y agoI'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.
- boringg 3y agoOnce competition is minimized and they have monopolistic power, raise prices.
- minimaxir 3y agoGiven that comparable open-source models exist for free, it's near-impossible to exert a monopoly.
- huac 3y agocheaper prices -> more usage -> larger batch sizes / better gpu utilization -> lower cost of service