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RE: Elon Thanks Hive For Making Him More Money

in LeoFinancelast year

As we know with software, most of this is going to be profit. The margins are at least 80%, closer to 90%.

For traditional software yes, AI software is not of the same calibre as normal software where you unload the cost of running the software to your customer.

You need to run inference on user request which still requires hefty amounts of compute that is not cheap. For example, Github Co-Pilot is losing 20 dollars a month for every user.

And Grok doesn't come close to OpenAI's paid offerings on any benchmark. (It is slightly better than GPT3.5 which is free to use.)

Grok is just going to be another money loser for X (formerly Twitter).

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Of course, since it is private company, we will not have access to the numbers.