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Yeah we're in an AI landgrab right now where at- or below-cost pricing is buying marketshare, lock-in, and underdevelopment of competitors. Smart move for them
by npunt 4y ago
Yeah we're in an AI landgrab right now where at- or below-cost pricing is buying marketshare, lock-in, and underdevelopment of competitors. Smart move for them to pour money into it.
- whatshisface 4y agoWe have got to find a word for plans that are plainly harmful yet advantageous to their executors that's more descriptive than "smart..."
- aaronblohowiak 4y agoShrewd or cunning
- ugh123 4y agoFor that you need 2 words: venture capital
- npunt 4y agoAgree. I didn't want to moralize, just wanted to point out it's a shrewd business move. It's rather anticompetitive, though that is hard to prove in such a dynamic market. Who knows, we may soon be calling it 'antitrust'.
- Retr0id 4y agocapitalistic, monopolistic
- dankwizard 4y agoTactical
- jimbokun 4y agoUberly?
- jeron 4y agoI prefer uber-esque
- JW_00000 4y agoI prefer Webvan-esque. From https://en.wikipedia.org/wiki/Webvan https://en.wikipedia.org/wiki/Webvan: > The company's investors pressured it to grow very fast to obtain first-mover advantage. This rapid growth was cited as one of the reasons for the downfall of the company. IMO, selling at a loss to gain market share only makes sense if there are network effects that lead to a winner-takes-all situation. Of which there are some for ChatGPT (training data when people press the thumbs up/down buttons), but is that sufficient?
- badloginagain 4y agoAlso useful for bootstrapping a dev ecosystem. If engineers are getting into AI development through OpenAI, they're using tools and systems within the OpenAI ecosystem. Daily on HN there's a post on some AI implementation faster than chatgpt. But my starting point is OpenAI. If you can capture the devs, especially at this stage, you get a force multiplier.
- mgreg 4y agoIt's called "predatory pricing". https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/single-firm-conduct/predatory-or-below-cost-pricing https://www.ftc.gov/advice-guidance/competition-guidance/gui...
- am44jnsf 4y agocapitalism
- pharmakom 4y agoEconomists call this price dumping
- FractalHQ 4y agoanti-competitive predatory pricing
- zpeti 4y agoYeah, if I was an owner or investor like Jasper.ai (AI written content generation SaaS) I'd be pretty worried right now.
- mach1ne 4y agoNot very effective considering that it will be remade in open source 1-2 years from now.