LLMs Are Cheap - Hackdot

Re:LLMs Are Cheap by burnte on Monday June 09, 2025 @03:22PM (#44228297)

Capex and opex are just accounting labels that help categorize costs and can improve planning ability. But at the end of the day a billion dollars is a billion dollars.

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Re:LLMs Are Cheap by codyb on Monday June 09, 2025 @03:28PM (#44228382)

I believe there's a fair amount of tax implications involved with that bucketing though. Capex is taxed at a lower rate than opex is my understanding but I may be wrong on the specifics of it all.

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Re:LLMs Are Cheap by everforward on Monday June 09, 2025 @04:38PM (#44229200)

They’re significant here because opex impacts profits while capex sort of doesn’t. They have a path to profitability if revenue > opex, by quitting growth and slashing capex.

Lots of hand waving, but that’s the idea.

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