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>You pay junior devs way way way more money for the privilege of them being bad.

I hope you don't think that what you're paying for an LLM today is what it actually costs to run the LLM. You're paying a small fraction.

So much investment money is being pumped into AI that it's going to make the 2000 dot-com bubble burst look tiny in comparison, if LLMs don't start actually returning on the massive investments. People are waking up to the realities of what an LLM can and can't do, and it's turning out to not be the genie in the bottle that a lot of hype was suggesting. Same as crypto.

The tech world needs a hype machine and "AI" is the current darling. Movie streaming was once in the spotlight too. "AI" will get old pretty soon if it can't stop "hallucinating". Trust me I would know if a junior dev is hallucinating and if they actually are then I can choose another one that won't and will actually become a great software developer. I have no such hope for LLMs based on my experiences with them so far.



> I hope you don't think that what you're paying for an LLM today is what it actually costs to run the LLM. You're paying a small fraction.

Depends, right? Claude Code on a Max plan is obviously unsustainable if the API costs are any indication; people can burn through the subscription price in API credits in a day or less.

But otherwise? I don't feel like API pricing is that unrealistic. Compute is cheap, and LLMs aren't as energy-intensive in inference as some would have you believe (especially when they conveniently mix up training and inference). And LLMs beat juniors at API prices already.

E.g. a month ago, a few hours of playing with Gemini or Claude 3.5 / 3.7 Sonnet had me at maybe $5 for a completed little MVP of an embedded side project; it would've taken me days to do it myself, even more if I hired some random fresh grad as a junior, and $5 wouldn't fund even an hour of their work. API costs would had to be underpriced by at least two orders of magnitude for juniors to compete.


Yeah, all fair, but I think there's enough capital to keep the gravy train rolling until the cost-per-performance actually get way, way, way below human junior engineers.

A lot of the application layer will disappear when it fails to show ROI, but the foundation models will continue to have obscene amounts of money dumped into them, and the coding use case will come along with that.




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