The demand for AI simply doesn't exist at the real prices. It barely exists at the current subsidized rates - Microsoft, Google, Meta, Anthropic, OpenAI are spending hundreds of billions to make mere billions.
And then these data centers will be worthless, future ones won't get built, memory demand will evaporate on the spot.
And ram producers are betting on it, they will just milk the AI companies until they collapse.
But instead, all we get is known liars going on podcasts and repeating "stylized facts" that aren't literally true about their supposed profitability on inference, from companies losing billions per year in a situation where they don't have to tell the truth.
That is VERY far from a convincing argument that they are profitable. So I can & will safely conclude that the opposite is true.
At the moment you can pay $20/month to do thousands of expensive queries a month (involving file uploads, the Pro model, extended thinking), and evidence suggests that heavy users are not profitable.
I'm arguing that even if inference isn't profitable right now it's not orders of magnitude off. Whatever pricing emerges for models equivalent to current frontier models won't be significantly higher than the current API pricing.
There are already enough small companies without tons of VC money to burn that are serving up nearly-frontier llms at prices lower than the big players are charging. They can't all be subsidising? These are companies without any moat or any IP.