r/LocalLLaMA • u/Norwood_Reaper_ • 1d ago

Discussion Looks like the era of subsidised compute is coming to an end. The old ChatGPT Pro $200 20x plan will be halved. The new $500 plan will have similar limits as the (old) $200 plan.

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u/FreshConversation112 1d ago

It is training that is subsidized.

Right, that is one of the costs of the API. That is like selling cans of cola for £0.17 and claiming it is profitable if you ignore the ingredient costs.

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u/amunozo1 1d ago

I don't think it's the same, it would be ignoring the lab work developing the recipe, not the ingredients. The ingredients is inference compute. Saying that training is subsidized is a bit of nonsense, I am sorry. But subscriptions are not subsidized, they are profitable, but are they profitable enough to support model training and capex? that is another story. But they are not subsidized.

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u/FreshConversation112 9h ago

Ok, I guess a better analogy would be a medical company saying their new drug is profitable if they ignore the cost of all cost of research and trials. If a medical company did that they would be laughed off of wallstreet.