I think I remain ultimately bearish on OpenAI and Anthropic’s position in the market but I wanted to iterate a few points on here and see if I’m thinking about this in an accurate way or completely missing some key information. OpenAI and Anthropic have a single product, an LLM which will only be successful as long as it maintains a competitive edge in the marketplace. While it is clear that LLM have and will continue to collect significant economic power, the bet is that OpenAI or Anthropic’s LLM will reach a new level first that will cause every other company to bow down to it. OpenAI and Anthropic rent all compute from Microsoft, Google, Amazon, to distribute their model. If 2) is not quickly reached, which seems highly debatable given the structure of LLM, then wouldn’t they be eventually completely decimated by FAANG? All of the hyperscalers have AI cloud products that can completely outprice them given the access to compute, there is local solutions being made, and don’t count out Apple on being able to deliver some a very quality local user-friendly AI product in the near future. Therefore everything that OpenAI and Anthropic are currently doing, will soon be done by other companies who are in much more advantageous positions to succeed long term. In short, OpenAI and Anthropic kind of seem like little kids that the big boys (FAANG) are letting run ahead for the time being, while taking a considerable chunk of their profit and growth through equity and compute. Yet OpenAI/Anthropoc are being priced in the market like they are the big boys despite having no direct access to compute while companies that have direct access are also developing LLMs at more reasonable speeds. submitted by /u/Zestyclose-Tear-1889
Originally posted by u/Zestyclose-Tear-1889 on r/ArtificialInteligence
You must log in or # to comment.