4 ms·

> Funny, considering people said the same thing about OpenAI and look who is eating FAANGs lunch now when it comes to AI? Precisely how is OpenAI eating anyone

> Funny, considering people said the same thing about OpenAI and look who is eating FAANGs lunch now when it comes to AI? Precisely how is OpenAI eating anyone's lunch? This is a serious question. Is OpenAI fantastically profitable? Does it have a proprietary moat that changes its margins in a way that no other competitor can overcome? Does it benefit from network effects that lead to a natural monopoly? From my mole's eye view I see a raft of "use AI on task X" applications that are incremental improvements on the underlying products, not game-changing products themselves. I also see insane equity valuations, which look more like Gilded Age railroad speculation than actual proof it's different this time. [0] Don't get me wrong. LLMs have some pretty amazing capabilities. The fact that they can perform what appears to be reasoning on huge pools of data is fascinating. But it seems premature to say that anyone has won here. [0] https://www.smithsonianmag.com/history/robber-baron-gamble-railroads-brought-down-bank-plunged-us-into-first-great-depression-panic-1873-180982877/ https://www.smithsonianmag.com/history/robber-baron-gamble-r...

capableweb 3y ago
> Precisely how is OpenAI eating anyone's lunch? This is a serious question. Because they made, maintain and offer GPT-4 which is currently the top-of-the-line LLM available. GPT-3 was also top-of-the-line when it launched, and they've proven they can iterate on the model and launch better ones. Currently, both open and non-models are just about barely competitive with GPT-3.5, but none is close to GPT-4. Even if they aren't profitable today, it's hard to imagine they won't be able to monetize things better, since their model is way ahead of any other model. That is, they manage to get that far before the company collapses from the inside, which seems more and more likely everyday.
- hodgesrm 3y ago
  Isn't that just a win-on-execution model? Given that OpenAI does not exactly have stellar management and the fact we're not sure where the big economic wins for LLMs will occur it seems premature to declare them the winner.
deleted 3y ago
[deleted]

capableweb 3y ago

> Precisely how is OpenAI eating anyone's lunch? This is a serious question. Because they made, maintain and offer GPT-4 which is currently the top-of-the-line LLM available. GPT-3 was also top-of-the-line when it launched, and they've proven they can iterate on the model and launch better ones. Currently, both open and non-models are just about barely competitive with GPT-3.5, but none is close to GPT-4. Even if they aren't profitable today, it's hard to imagine they won't be able to monetize things better, since their model is way ahead of any other model. That is, they manage to get that far before the company collapses from the inside, which seems more and more likely everyday.

hodgesrm 3y ago
Isn't that just a win-on-execution model? Given that OpenAI does not exactly have stellar management and the fact we're not sure where the big economic wins for LLMs will occur it seems premature to declare them the winner.

deleted 3y ago

[deleted]