My guess: it's the price at which they make more money than if they rent the TPUs to other companies.
The Gemini team has had trouble securing enough TPUs for their user's needs. They struggle with load and their rate limits are really bad. Maybe at a higher price, they have a better chance at getting more TPUs assigned?
The cost at such they could rent out the TPUs, i.e. the market rate, is the inference cost.
Just because you are vertically integrated doesn't mean you get to discount the one business units products to the other. Doing so discounts the opportunity cost you pay and is just bad accounting.
Depends on if you have spare capacity I think. They have minimal competition so they might be maximizing profit by charging prices higher than what clears all their supply.
Predatory pricing is a great business strategy and all (particularly when countering the competitors predatory pricing - what could go wrong), but that doesn't mean that the gemini-team should account for it as if they're getting the compute cheaper, it just means that they should run a loss.
That's actually where AI differs: there is no network effect. So no reason for me to stay with a tool if suddenly another one is better or cheaper. Changing the model I use is literally two clicks in Zed. No retention possible for providers.
The speed of the change did. This is the “climate has always been changing” argument climate deniers make. It is a true statement which is still a lie by omission. Climate deniers purposely ignore that the climate has never changed at the current rate, and AI-stans neglect to mention that before AI nobody was merging a 1M+ lines of code in one go.
No that's my point, Jarred didn't write the code. Before AI, at least the person who wrote the code "reviewed" it (as being aware of the code you wrote was a necessary part of the process of writing code).
federations are the only decentralization model that scales, the issue is that most "federated" systems are actually just "distributed centralization" eg mastodon.
If Microsoft is a select partner, maybe they could shove it into Copilot for VS or something, but yeah, I'm wondering the same, maybe Apple could be one of their partners too?
My guess: it's the price at which they make more money than if they rent the TPUs to other companies.
The Gemini team has had trouble securing enough TPUs for their user's needs. They struggle with load and their rate limits are really bad. Maybe at a higher price, they have a better chance at getting more TPUs assigned?