• OptimusPrimeDownfall@discuss.tchncs.de
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    5 months ago

    I’m sorry, did everybody else not see this coming from miles away? This is the private equity playbook.

    1. Make a service so cheap as to seem to good to be true to attract customers.
    2. Gain a loyal base of people
    3. once theyre locked in, squeeze them for all they’re worth.

    When something is too good to be true, you ALWAYS have to be ready to either jump ship, massively change how you do things, or pay through the nose.

    • kescusay@lemmy.world
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      5 months ago

      The unique thing about GitHub Copilot (and all the other vibe-coding tools) is that they’re speed-running the playbook because this shit is not profitable. It can’t be. Their costs scale up with usage, unlike every other business that can take advantage of economies of scale, so they’ve skipped the slow, steady enshittification phase and jumped directly into the “squeeze blood from this stone to keep the scam going a little longer” phase.

      • pooterbroo@programming.dev
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        5 months ago

        Plain inference is profitable actually, that’s why there are a hundred inference providers on OpenRouter who compete by undercutting each other. The labs however aren’t profitable because training the models is a huge drain.

        • kescusay@lemmy.world
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          5 months ago

          As others have pointed out, the compute cost of inference is only one small part of the puzzle. All the frontier model providers - which OpenRouter gives you access to - are massively raising their prices in desperate bids to recoup the cost of model generation in the first place.

          There’s really no hiding from the token apocalypse unless you’re running a model on your own hardware.