The cost of “manufacturing” an AI response is the inference cost, which this article covers.
> That would be like saying the unit economics of selling software is good because the only cost is some bandwidth and credit card processing fees. You need to include the cost of making the software
Unit economics is about the incremental value and costs of each additional customer.
You do not amortize the cost of software into the unit economics calculations. You only include the incremental costs of additional customers.
> just like you need to include the cost of making the models.
The cost of making the models is important overall, but it’s not included in the unit economics or when calculating the cost of inference.