Baldur Bjarnason on Nostr: Remember those news items that said these services were running at a loss? Well, ...

Remember those news items that said these services were running at a loss?

Well, those calculations were based on pure compute costs, which DON’T include capital expenses like chips or hardware and it didn’t include labour costs which are, ironically, quite high for generative models

All of which means the economics for “AI” is much much worse than most people think.