Comment on Techcrunch reports that AI coding tools have "very negative" gross margins. They're losing money on every user.

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TechLich@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

I dunno about that… Very small models (2-8B) sure but if you want more than a handful of tokens per second on a large model (R1 is 671B) you’re looking at some very expensive hardware that also comes with a power bill.

Even a 20-70B model needs a big chunky new graphics card or something fancy like those new AMD AI max guys and a crapload of ram.

Granted you don’t need a whole datacenter, but the price is far from zero.

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