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Jillion dollar valuations aren't anything new, but this seems as egregious as WeWork being worth $47B. It's an open secret that you can't build a moat in AI. I
by alangibson 3y ago
Jillion dollar valuations aren't anything new, but this seems as egregious as WeWork being worth $47B.
It's an open secret that you can't build a moat in AI. It's way too "easy" to create a good-enough competitor for any given profitable use case that can underbid them.
On the other hand, a16z just gave Adam Newman $300M to set up expensive apartments so I'm pretty sure OpenAI will be the first private $1T company.
- hotstickyballs 3y agoTo be fair now’s as good a time as any. You’ve got the ChatGPT plugins, the secrecy behind closed sourcing the model and the reach of the chat product. That’s a lead that ventures looking for. Although it’s a temporary lead, all that VCs need to do is to find the next idiot to offload to.
- alangibson 3y agoYou'd hope the VCs would know that a lead is in no way a durable moat. And the fact that everyone peed themselves over plugins tells me that those people have taken leave of their senses. > all that VCs need to do is to find the next idiot to offload to. This is the correct answer.
- minimaxir 3y ago> It's an open secret that you can't build a moat in AI. OpenAI is sure-as-hell trying, though. (GPTs/Assistants)
- alangibson 3y agoHow do these make durable moats? I mean I guess if you've got your agents tuned up then you wouldn't want to change platforms. But that's garden variety stickiness at best. It wouldn't keep big corporate accounts onboard.
- bushbaba 3y agoFirst private 1T company with less than 100M/year of revenue at this rate.
- alangibson 3y agoI'd definitely believe $1T based on the hype. It depends on how far out the Trough of Disillusionment is though.
- wavemode 3y agoThey're trying to build a regulatory moat. On the off chance they can scare enough people in Congress, open-source models will get restricted and everyone will have to pay money to the big companies to make use of AI.