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Are inference providers able to make any margins?

Reddit r/LocalLLaMA · yesterday

The post discusses the low profit margins of AI inference providers due to high GPU costs and competitive pricing, suggesting the business model faces challenges despite market potential.

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#gpu-costs

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TLDR AI · 2026-08-07 Cached

DeepSeek announced a significant API price hike, and analysis suggests the move goes beyond GPU cost pass-through to reflect broader market shifts toward value-based pricing and open-source ecosystem pressures.

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