Implicit costs refer to the opportunity costs associated with a firm’s resources, representing the income that could have been earned if those resources were employed in their next best alternative use.
The value of the modern LLM is predicated on trained models. You can run the models locally. You can’t run industry scale training locally.
Might as well say “The automotive industry isn’t so bad if you just look at the carbon footprint of a single car”. You’re missing the forest for this one very small tree.
Implicit costs refer to the opportunity costs associated with a firm’s resources, representing the income that could have been earned if those resources were employed in their next best alternative use.
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Anthropic is losing $3 billion or more after revenue in 2025
OpenAI is on track to lose more than $10 billion.
xAI, makers of “Grok, the racist LLM,” losing it over $1 billion a month.
I don’t know that generative infill justifies these losses.
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Again, I point you to “implicit costs”. Something this trivial isn’t good if it’s this expensive.
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The value of the modern LLM is predicated on trained models. You can run the models locally. You can’t run industry scale training locally.
Might as well say “The automotive industry isn’t so bad if you just look at the carbon footprint of a single car”. You’re missing the forest for this one very small tree.
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