Let's. If I were to rent an instance for short bursts of time, I would be paying many multiples over a constant use instance. If I were to guarantee usage for x years, where the larger the X, the greater the discount. So already the delta between sporadic usage, X years use is large. There is evidence for this price discrepancy within all the cloud providers so this is not speculation. The the price difference is massive.
If you want to save even more cost, you could rent out VPSes or baremetal. They are insanely cheap, and compared to an AWS on demand instance the difference is night and day. Try comparing Hetzner with AWS. Hetzner, as far as I can tell, is not trying to entrench me into their system by offering extremely low prices. Nor are they a charity. I might even say they are an "open" hosting provider. To me it feels like they are passing along most of their savings and taking a small cut.
This is what it feels like to me what openAI is doing. I don't think their prices are so low its unprofitable. But because of their immense scale, its so much cheaper than me running an instance. I don't have to jump into conspiracy land to come up with a reasoning.
You seemed to want to speculate about how this is all some conniving trap based on their price and I simply pointed out why that's bad speculation using an example in a different industry. I rest my case.
Let's. If I were to rent an instance for short bursts of time, I would be paying many multiples over a constant use instance. If I were to guarantee usage for x years, where the larger the X, the greater the discount. So already the delta between sporadic usage, X years use is large. There is evidence for this price discrepancy within all the cloud providers so this is not speculation. The the price difference is massive.
If you want to save even more cost, you could rent out VPSes or baremetal. They are insanely cheap, and compared to an AWS on demand instance the difference is night and day. Try comparing Hetzner with AWS. Hetzner, as far as I can tell, is not trying to entrench me into their system by offering extremely low prices. Nor are they a charity. I might even say they are an "open" hosting provider. To me it feels like they are passing along most of their savings and taking a small cut.
This is what it feels like to me what openAI is doing. I don't think their prices are so low its unprofitable. But because of their immense scale, its so much cheaper than me running an instance. I don't have to jump into conspiracy land to come up with a reasoning.