LLM marginal cost will stay high even as token cost declines.
- LLM marginal cost will stay high even as token cost declines.
- That's because of Jevon's Paradox.
- As the cost gets cheaper, we'll use them for even more things.
- Anything that uses LLMs will have to contend with non-trivial marginal cost, for the foreseeable future.
- Electricity is cheap and yet it's still metered.