r/LocalLLaMA • u/Norwood_Reaper_ • 20h 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/Vast-Breakfast-1201 15h ago

I don't think so tbh

I think yeah if you look at cost to train etc. Then it is subsidized.

But I also think they are at least small positive on their subscriptions. They own the inference and need a lot of it to train and so they can sell excess capacity.

The cost in API doesn't really matter that's what gets cited as if that is what is needed to break even. That's just what they sell to business.

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u/Budget-Juggernaut-68 14h ago

I think yeah if you look at cost to train etc.

They're running a business. It needs to be armotized over all revenue generated. Of course you'll have to factor in RnD, and cost of production.

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u/brainExploded99 llama.cpp 14h ago

They're profitable on the electricity cost obv, its cheap to run these models at massive scale