For background, I’m a data scientist working for a Fortune 50 corporation that is pushing heavy towards AI. Assuming we don’t hit AGI anytime soon, I just can’t get the math to work. Companies like openai and enthropic are burning through billions of dollars to buy tons of compute units to develop the most cutting edge models, only to have open weight models released with the same capabilities 6 months to 12 months later that run on 1/10 to 1/20th of the compute resources. If that’s the case, then they can truly never achieve a Google or Amazon like domination. If another company can develop a service that’s almost as good using openweight models that are a year old, when you consider how slowly corporate America adopts new products, that company is always going to be a threat. There doesn’t ever seem to be a time when openAI and anthropic won’t have to continuously buy more and more compute resources to build better models, but 95% of the AI problems that need to be solved could be solved by the cheaper models that are a year old. A significant portion of corporations are just going to choose to go for the cheaper models. It doesn’t seem possible that the big AI companies will ever have the kind of Monopoly that Amazon and Google had in their respective industries. You’re just going to have to keep burning money to survive. What am I missing here? submitted by /u/mcjon77
Originally posted by u/mcjon77 on r/ArtificialInteligence