24 days ago
- Token prices are currently in a state of supply crunch and instability, with all variables in play, leading to an uncertain future equilibrium.
- Supply is increasing due to massive data center and semiconductor investments, improved inference efficiency, and variable token efficiency in new models.
- Demand surge is driven mainly by software development, a relatively small field, leaving future use cases, scale, and token needs unknown.
- Inference currently has high gross margins, but profitability depends on covering training costs and uncertain future demand ROI.