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Aren't all of these thin branded clients around chatgpt extremely high risk ventures for both the company and the customers? OpenAI can change their prices, or

by klysm 3y ago

Aren't all of these thin branded clients around chatgpt extremely high risk ventures for both the company and the customers? OpenAI can change their prices, or their terms whenever they please and the crunch _will_ come in the future when they have to make back their money they are currently throwing away to grow.

omarfarooq 3y ago
There's competition for alternatives. https://www.promptingguide.ai/models/collection https://www.promptingguide.ai/models/collection Life will find a way.
HPsquared 3y ago
They clearly didn't cost much to make. So in terms of business risk it's one of those "high probability, low consequence" type risks. There's upside to be made for as long as it remains viable. Just don't bet the farm on it.
ushakov 3y ago
In my opinion, they’re not, because OpenAI makes generalized tools, that lack specificity (still need prompting, splitting, etc.). I’d see it as AI as a Platform. The AI space will get hyper-competitive now with companies like Anthropic and open-source projects like Llama. LLMs will become a commodity
- omneity 3y ago
  I tend to subscribe to this viewpoint. With the size of the opportunity and the level of competition, and barring some exponential compounding dynamic (possible in this space of all industries), I don’t see foundational model providers like OpenAI able to compete at so many levels of abstraction at once (as in both platform and vertical solutions). What we’re more likely to see is some sort of consolidation and collapse of layers of what used to be a viable business. Companies who are not actively working on differentiation and adding real value will simply start withering away, at the same time giving space to nimbler teams that operate what used to take hundreds of people to manage. tl;dr: No direct competition but consolidation and disruption of current operators.
danenania 3y ago
Generative AI as a category isn't going anywhere and the model interfaces are mostly interchangeable so there isn't much lock-in. If OpenAI were to jump the shark, it's not that hard to switch an app to alternative models. Plus, OpenAI is making plenty of revenue[1]. Yes, they're operating at a loss to grow faster, but it sounds like their unit economics are positive meaning can likely become profitable in the future without price hikes or user-hostile changes. 1- https://www.maginative.com/article/openais-revenue-skyrockets-to-1-3-billion-annual-rate/ https://www.maginative.com/article/openais-revenue-skyrocket...
sharemywin 3y ago
couldn't you say the same thing about anything you build on top of? what if AWS raises its prices? If your building something people want to use and willing to pay for you would raise prices. could it crash and burn sure. but you can't remove all risk as a startup.

by klysm 3y ago

omarfarooq 3y ago

There's competition for alternatives. https://www.promptingguide.ai/models/collection https://www.promptingguide.ai/models/collection Life will find a way.

HPsquared 3y ago

They clearly didn't cost much to make. So in terms of business risk it's one of those "high probability, low consequence" type risks. There's upside to be made for as long as it remains viable. Just don't bet the farm on it.

ushakov 3y ago

In my opinion, they’re not, because OpenAI makes generalized tools, that lack specificity (still need prompting, splitting, etc.). I’d see it as AI as a Platform. The AI space will get hyper-competitive now with companies like Anthropic and open-source projects like Llama. LLMs will become a commodity

omneity 3y ago
I tend to subscribe to this viewpoint. With the size of the opportunity and the level of competition, and barring some exponential compounding dynamic (possible in this space of all industries), I don’t see foundational model providers like OpenAI able to compete at so many levels of abstraction at once (as in both platform and vertical solutions). What we’re more likely to see is some sort of consolidation and collapse of layers of what used to be a viable business. Companies who are not actively working on differentiation and adding real value will simply start withering away, at the same time giving space to nimbler teams that operate what used to take hundreds of people to manage. tl;dr: No direct competition but consolidation and disruption of current operators.

danenania 3y ago

Generative AI as a category isn't going anywhere and the model interfaces are mostly interchangeable so there isn't much lock-in. If OpenAI were to jump the shark, it's not that hard to switch an app to alternative models. Plus, OpenAI is making plenty of revenue[1]. Yes, they're operating at a loss to grow faster, but it sounds like their unit economics are positive meaning can likely become profitable in the future without price hikes or user-hostile changes. 1- https://www.maginative.com/article/openais-revenue-skyrockets-to-1-3-billion-annual-rate/ https://www.maginative.com/article/openais-revenue-skyrocket...

sharemywin 3y ago

couldn't you say the same thing about anything you build on top of? what if AWS raises its prices? If your building something people want to use and willing to pay for you would raise prices. could it crash and burn sure. but you can't remove all risk as a startup.