Companies like Claude with their AI subscriptions might be losing money, but I doubt paid-per-token AI API usage is not making them money. There are several companies like e.g. DeepInfra and Fireworks that have sprung up to sell specifically that. I don’t think simply multiplying API cost with expected usage is sufficient to estimate how much will be charged however, because I suspect that OpenAI and Claude currently have a significant profit margin since they seem to be the defacto duopoly in the US.
The chart above shows that quite clearly, the vertical axis is the combined score on various benchmarks. The horizontal axis shows the price. OpenAI and Claude do score higher, but the price difference is enormous, even if it wasn’t a log scale (70$ vs 1.3k$ for similar results!). The competition of these companies could drastically reduce the margins of US companies,
I therefore think the pricing will depend on whether the large US AI companies manage to lobby the government to enact laws to cripple the competition of Chinese companies under the guise of security.
Companies like Claude with their AI subscriptions might be losing money, but I doubt paid-per-token AI API usage is not making them money. There are several companies like e.g. DeepInfra and Fireworks that have sprung up to sell specifically that. I don’t think simply multiplying API cost with expected usage is sufficient to estimate how much will be charged however, because I suspect that OpenAI and Claude currently have a significant profit margin since they seem to be the defacto duopoly in the US.
The chart above shows that quite clearly, the vertical axis is the combined score on various benchmarks. The horizontal axis shows the price. OpenAI and Claude do score higher, but the price difference is enormous, even if it wasn’t a log scale (70$ vs 1.3k$ for similar results!). The competition of these companies could drastically reduce the margins of US companies,
I therefore think the pricing will depend on whether the large US AI companies manage to lobby the government to enact laws to cripple the competition of Chinese companies under the guise of security.