4 ms·

Someday enterprises will actually pay someone for LLM tech and infra. Someday…

esafak 3y ago
Lots of companies are paying OpenAI, so someday is yesterday? https://www.reuters.com/technology/openai-annualized-revenue-tops-16-billion-information-2023-12-30/ https://www.reuters.com/technology/openai-annualized-revenue...
- monero-xmr 3y ago
  Most of that is recycled. They don’t break it down because it would make the obvious, obvious. Microsoft pays OpenAI but requires them to use Azure, and OpenAI pays Microsoft the same money back. This is why they continually need billions in investment, because they are far from profitable. The same principle applies to defense. The US gives Israel and Ukraine tens of billions, but that’s a credit to buy from US defense firms. That money gets recycled right back to US weaponry.
  - infecto 3y ago
    Your logic seems highly flawed. I get what you are saying in the example, yes the government provides weapons which are paid for by the government but produced by defense companies. But in the Microsoft example it is customers who are paying Microsoft to use OpenAI via Azure. Thats a free market of money inflows. Same with all the people using OpenAI directly. Not sure how you would even think of the money being recycled in this scenario. Yes of course there is some back scratching in the sense that Microsoft invested in OpenAI with a large portion of that investment in Azure credits which makes the investment quite nice from MSFT's side but there is still real demand for Azure services to use OpenAI apis.
    - monero-xmr 3y ago
      For big enterprises it is either included in existing licenses (i.e. Microsoft Word has ChatGPT embedded) or pilots. No one is cutting massive checks to Microsoft specifically for OpenAI services. This is obvious, but if you need some journalist to validate what is already logically clear: https://www.wsj.com/tech/ai/ais-costly-buildup-could-make-early-products-a-hard-sell-bdd29b9f https://www.wsj.com/tech/ai/ais-costly-buildup-could-make-ea... https://www.wsj.com/tech/ai/ai-deals-microsoft-google-amazon-7f624054 https://www.wsj.com/tech/ai/ai-deals-microsoft-google-amazon...
      - infecto 3y ago
        I can see how its easy to get confused in this area but there are indeed large checks gettign written for using services like OpenAI or Anthropic. You are really conflating too many things at once. 1) Yes, big tech is having a hard time monetizing their bespoke AI tooling within their own ecosystem. 2) Yes, big tech has made investments in the AI space where they are providing a portion of that funding as credits to use in their cloud offerings. 3) Here is where you are incorrect though. Companies are writing large checks for the raw compute/access to AI models. It is true across the spectrum of Azure OpenAI, OpenAI directly, AWS Bedrock etc, there are a lot of companies both big and small using these services heavily. To think otherwise is naive.
        monero-xmr 3y ago
        The investment is massive, but real tangible products that have purchasers for sustainable contracts is miniscule. We are in the experimental phase and hype cycle, and the trough of despair is next. I do think real products will come from this, but the actual productivity enhancements at the scale necessary to justify the investment have not materialized.
- riku_iki 3y ago
  that's rumors from click bait subscription site Information without much proof.

Lots of companies are paying OpenAI, so someday is yesterday? https://www.reuters.com/technology/openai-annualized-revenue-tops-16-billion-information-2023-12-30/ https://www.reuters.com/technology/openai-annualized-revenue...

monero-xmr 3y ago
Most of that is recycled. They don’t break it down because it would make the obvious, obvious. Microsoft pays OpenAI but requires them to use Azure, and OpenAI pays Microsoft the same money back. This is why they continually need billions in investment, because they are far from profitable. The same principle applies to defense. The US gives Israel and Ukraine tens of billions, but that’s a credit to buy from US defense firms. That money gets recycled right back to US weaponry.
- infecto 3y ago
  Your logic seems highly flawed. I get what you are saying in the example, yes the government provides weapons which are paid for by the government but produced by defense companies. But in the Microsoft example it is customers who are paying Microsoft to use OpenAI via Azure. Thats a free market of money inflows. Same with all the people using OpenAI directly. Not sure how you would even think of the money being recycled in this scenario. Yes of course there is some back scratching in the sense that Microsoft invested in OpenAI with a large portion of that investment in Azure credits which makes the investment quite nice from MSFT's side but there is still real demand for Azure services to use OpenAI apis.
  - monero-xmr 3y ago
    For big enterprises it is either included in existing licenses (i.e. Microsoft Word has ChatGPT embedded) or pilots. No one is cutting massive checks to Microsoft specifically for OpenAI services. This is obvious, but if you need some journalist to validate what is already logically clear: https://www.wsj.com/tech/ai/ais-costly-buildup-could-make-early-products-a-hard-sell-bdd29b9f https://www.wsj.com/tech/ai/ais-costly-buildup-could-make-ea... https://www.wsj.com/tech/ai/ai-deals-microsoft-google-amazon-7f624054 https://www.wsj.com/tech/ai/ai-deals-microsoft-google-amazon...
    - infecto 3y ago
      I can see how its easy to get confused in this area but there are indeed large checks gettign written for using services like OpenAI or Anthropic. You are really conflating too many things at once. 1) Yes, big tech is having a hard time monetizing their bespoke AI tooling within their own ecosystem. 2) Yes, big tech has made investments in the AI space where they are providing a portion of that funding as credits to use in their cloud offerings. 3) Here is where you are incorrect though. Companies are writing large checks for the raw compute/access to AI models. It is true across the spectrum of Azure OpenAI, OpenAI directly, AWS Bedrock etc, there are a lot of companies both big and small using these services heavily. To think otherwise is naive.
      - monero-xmr 3y ago
        The investment is massive, but real tangible products that have purchasers for sustainable contracts is miniscule. We are in the experimental phase and hype cycle, and the trough of despair is next. I do think real products will come from this, but the actual productivity enhancements at the scale necessary to justify the investment have not materialized.
riku_iki 3y ago
that's rumors from click bait subscription site Information without much proof.