Tensor Economics
Piotr Mazurek, Felix Gabriel, Eric SchreiberWe delve into the money behind AI
| Platform |  | Pricing | Only free issues | Publishes | Infrequently |
|---|---|---|---|---|---|
| Issues | 5 | Subscribers | Read | tensoreconomics.com |
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Latest Issues
Recent posts by this newsletter. Browse the email archive.
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In the famous essay from May 2025, “Welcome to the Era of Experience,” Rich Sutton and David Silver proposed a new paradigm of training AI models - models that learn not through predicting the next word against text scraped from Common Craw...
Why are embeddings so cheap?
Embeddings are a fundamental component of every modern retrieval augmented generation (RAG) system. State-of-the-art (SOTA) embeddings are provided by companies such as OpenAI or Google at prices up to two orders of magnitude lower on a per...
MoE Inference Economics from First Principles
The release of first DeepSeek R1, then Kimi K2 and then DeepSeek V3.1 mixture-of-expert (MoE) models has firmly established them as the leading architecture of large language models (LLMs) at the intelligence frontier. Due to their massive ...
LLM Inference Economics from First Principles
The main product LLM companies offer these days is access to their models via an API, and the key question that will determine the profitability they can enjoy is the inference cost structure. In this text we will explain where the cost of ...
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