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Google has their own chips. Amazon do... Meta as well... Vertical integration is a competitive advantage worth pursuing for OpenAI. The spin is just that - spi

Google has their own chips. Amazon do... Meta as well... Vertical integration is a competitive advantage worth pursuing for OpenAI. The spin is just that - spin.

timmg 3y ago
But this isn't OpenAI making their own chips, right? It's the CEO of OpenAI creating a separate company to make chips and then selling them to OpenAI.
pavlov 3y ago
The difference is that Meta's chips are not developed by a separate company that just happens to be owned by Zuckerberg and charges Meta a ton of money for the R&D work. That would leave Meta's other shareholders paying the bill while missing out on the gains if the project becomes a success. In other words, the risk is shared but the potential rewards are reaped by just one shareholder.
- cma 3y ago
  Elon is richer and used NASA money at SpaceX to buy bad SolarCity bonds, then used Tesla to bail out SpaceX and SolarCity when SolarCity were going to default on them. But, Zuckerberg has done some stuff maybe somewhat similar to the WeWork trademark thing: the "Meta" trademark came from his quasi-charity's investment into some kind of meta-study medical research company. I'm not sure there was any conflict there though as I think Chan-Zuckerberg initiative fully owned it and didn't have other shareholders.
maizeq 3y ago
This news is not about vertical integration or competitive advantage but of potential conflicts of interest. Meta/Amazon/Alphabet chips are made in house or from acquisitions (presumably with the CEO having no financial stake in the acquired companies) This is instead a question of whether Sama preferentially made a contract with Rain, perhaps despite better alternatives. (Which would benefit him but might not be in the best interests of stake holders). It’s possible it was the correct decision though, and his stake is just a fortunate side-effect, after all Sam is also invested in other chip companies (Cerebras I believe?).
deleted 3y ago
[deleted]

Google has their own chips. Amazon do... Meta as well... Vertical integration is a competitive advantage worth pursuing for OpenAI. The spin is just that - spin.

timmg 3y ago

But this isn't OpenAI making their own chips, right? It's the CEO of OpenAI creating a separate company to make chips and then selling them to OpenAI.

pavlov 3y ago

The difference is that Meta's chips are not developed by a separate company that just happens to be owned by Zuckerberg and charges Meta a ton of money for the R&D work. That would leave Meta's other shareholders paying the bill while missing out on the gains if the project becomes a success. In other words, the risk is shared but the potential rewards are reaped by just one shareholder.

cma 3y ago
Elon is richer and used NASA money at SpaceX to buy bad SolarCity bonds, then used Tesla to bail out SpaceX and SolarCity when SolarCity were going to default on them. But, Zuckerberg has done some stuff maybe somewhat similar to the WeWork trademark thing: the "Meta" trademark came from his quasi-charity's investment into some kind of meta-study medical research company. I'm not sure there was any conflict there though as I think Chan-Zuckerberg initiative fully owned it and didn't have other shareholders.

maizeq 3y ago

This news is not about vertical integration or competitive advantage but of potential conflicts of interest. Meta/Amazon/Alphabet chips are made in house or from acquisitions (presumably with the CEO having no financial stake in the acquired companies) This is instead a question of whether Sama preferentially made a contract with Rain, perhaps despite better alternatives. (Which would benefit him but might not be in the best interests of stake holders). It’s possible it was the correct decision though, and his stake is just a fortunate side-effect, after all Sam is also invested in other chip companies (Cerebras I believe?).

deleted 3y ago

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