this post was submitted on 29 Jan 2025
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Depends on if you're the AI provider, or the user.
For institutions that had to pay massive fees to use cloud-based AI services, now they might be able to pull it off in house or with far less costs involved. It will save money.
For those selling AI, it'll get very competitive, and they can't charge hundreds or thousands of dollars anymore. It will be less profitable or not at all.
And the silver lining was that all those American companies wasted hundreds of millions, if not, billions on developing the tech. Good for them for wasting all that money.
And good for China for making Deepseek open source as an added "fuck you" to AI capitalists.
It is already not at all profitable. Competition will drive prices down, but probably not by as much as the efficiency increase. AI companies could go from having high prices and even higher costs to having low prices and even lower costs. Or they could go under, and be replaced by the competition.