5 ms·
They over purchased hardware. This is very likely priced below recovering the cost of the hardware but still above operating expenses.
by buckle8017 2mo ago
They over purchased hardware.
This is very likely priced below recovering the cost of the hardware but still above operating expenses.
- infecto 2mo agoWhat evidence is there? I have no idea either way but one thing that detracts from these threads is folks claiming things as a fact without evidence.
- qntmfred 2mo agosama literally just said they wish they had bought more. the price drops are almost certainly due to good old fashioned hardware innovation (wafer scale with cerebras) and optimizing hardware development based on model architecture and inference costs. other inference providers will try to do the same if they can. https://www.youtube.com/watch?v=XDB5beon4DY&t=4m20s https://www.youtube.com/watch?v=XDB5beon4DY&t=4m20s
- paxys 2mo agoThat’s ridiculous. Every major AI lab is compute constrained. That’s exactly why nvidia is worth trillions today. If OpenAI had a single extra GPU they’d be using it to run another training cycle or experiment for their next model.