Regarding the "cache hit rate of 30%" part, if I understand correctly, "cache hit" means no actual search happens, right? If so, this means 30% of the searches actually cost nothing & the related revenue is 100% profit. Accordingly, take ChatGPT-Equivalent search for example, with a overall 75% profit margin, the cost of each actual sear…
Regarding the "cache hit rate of 30%" part, if I understand correctly, "cache hit" means no actual search happens, right? If so, this means 30% of the searches actually cost nothing & the related revenue is 100% profit. Accordingly, take ChatGPT-Equivalent search for example, with a overall 75% profit margin, the cost of each actual search should be "0.055 * (1- 75%) / (1 - 30%) = 0.020", not "0.055 * (1- 75%) * (1 - 30%) = 0.010"
Regarding the "cache hit rate of 30%" part, if I understand correctly, "cache hit" means no actual search happens, right? If so, this means 30% of the searches actually cost nothing & the related revenue is 100% profit. Accordingly, take ChatGPT-Equivalent search for example, with a overall 75% profit margin, the cost of each actual search should be "0.055 * (1- 75%) / (1 - 30%) = 0.020", not "0.055 * (1- 75%) * (1 - 30%) = 0.010"