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> closed sourced model pricing has no relationship to its size. That's too strong. Only in an actual monopoly for a product with no substitutes that has price
by energy123 1mo ago
> closed sourced model pricing has no relationship to its size.
That's too strong. Only in an actual monopoly for a product with no substitutes that has price inelastic demand can pricing fully disconnect from costs. Frontier model serving is only maybe a soft version of that, where costs and moat both contribute to pricing.
- anthonypasq 1mo agosure, but my point is that supply and demand are what determines pricing, not cost to serve. its like thinking that because something costs $1 to make, its not possible for a company to sell it for $10, or that becuase they are selling something for $10, it must cost them $9 to make.