Nate B Jones argues that the economics of AI services depend on both the cost of inferenceAI inference economics examines the revenue, cost, utilization, pricing, and margins involved in serving trained models. and the value of the workflow systems built around models.
He distinguishes retail API prices from providers’ internal costs, then discusses context, tools, permissions, evaluationsEvaluation is the systematic assessment of a system's behaviour or results against explicit criteria. and routingAI model routing sends each request to a model chosen for that request's complexity, cost, speed, privacy, or other requirements. as parts of an AI harnessAn AI agent harness is the software framework that packages a model with tools, instructions, context management, execution controls, and user interaction.. His scenarios for company strategy and future valuations are analysis rather than confirmed outcomes.
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