In my part of the world, that tactic is used by telcos to sell "broadband data". You buy internet bundle of about $1 and they give you expiry of about a week. This drives up the "real" price of these purchases because of the time constraint. Ultimately, if you had 1GB of data left after a week, it is all gone and you have to purchase again - further driving sales. Since this is a third world country we're talking about and telco's tend to be oligopolies and tend to also do some form of price collusion among themselves, it was generally accepted as "just how things were".
But I always found it to be unfair because people should be allowed to take their time consuming whatever product they purchased.
I wonder if this is general practice for all llm apis? Am I missing something? Is this really how things should be? I can't seem to fathom why "purchased" llm credits should have an expiry date - however generous. Especially when the same credits can be used to access any of their available models.
I'd say you answered your own question.
> telco's tend to be oligopolies and tend to also do some form of price collusion among themselves, it was generally accepted as "just how things were"
So are LLM companies, at this stage
> Am I missing something?
Not really
> Is this really how things should be?
No, this is how thing are. I'm more than interested in ways to change the status quo, though.
Even though it gives me the vibes of something the fictional " Sirius Cybernetics Corporation", would do.
Just guessing but probably to bring it up to par with a coin operated car wash to get more monies.
- Insert Duckets [1]
- Start Washing Car
- Insert More Duckets to Rinse Car.
[1] - slang, Items of a lootable nature, usually looted off fools.
That, or they don't want criminals building up a cache of credits from stolen credit cards, stolen accounts and reselling the credits / accounts but I prefer to think it's to be a car wash.
- Prevents hoarding
- Allows freedom for sales promotions while controlling service commitments
- Marginally increases revenue per unit of service
- Provides stable pricing in shorter term while accommodating price changes over longer term
- Excites engagement
> - Provides stable pricing in shorter term while accommodating price changes over longer term
How? If you pre-pay $5, your account is credited by $5, and when you make an API request you get charged at whatever the rate is for the model you called at the time you used it. You aren't buying some virtual currency or locking in a specific price.
> - Excites engagement
More accurately, irritates customers by keeping their money without providing any service in return.