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I don't understand the market. By most metrics they don't even have the best LLM, Anthropic do, so why are investors valuing them so highly? Is it because of th

I don't understand the market. By most metrics they don't even have the best LLM, Anthropic do, so why are investors valuing them so highly? Is it because of the strength of their brand?

sfblah 2y ago
We've started using meta.ai and the 200B llama model on a couple servers we run at my company. I really have to go with Zuckerberg's approach on this one. I'm not sure OpenAI and Anthropic really have anything that can't be cloned much more cheaply.
- htrp 2y ago
  There's a 200bn parameter llama model?
  - sfblah 2y ago
    Bleh you're right. I meant the 70B model. I think there's some other context where the number 200 makes sense. Thanks for the correction.
- jsheard 2y ago
  Zuckerberg's approach may be good for you but it's costing Meta astronomical amounts of money for pretty nebulous benefit to themselves, so I wouldn't count on their current approach continuing forever. Enjoy it while it lasts.
  - generalizations 2y ago
    Most of FAANG is effectively in competition with each other; OpenAI might be joining that cohort soon; as long as Facebook can kill their business model, Facebook is keeping a major player out of the running. Zuckerberg will keep doing this for as long as it takes to kneecap or bankrupt OpenAI.
  - paxys 2y ago
    > for pretty nebulous benefit to themselves All of Meta's products are increasingly dependent on AI for engagement and ads. Their investments in the space are first and foremost for the benefit of the company itself. So no, they are not going away any time soon.
minimaxir 2y ago
OpenAI's revenue is more diversified than just having the "best" LLM (ChatGPT+, enterprise deals, etc). Only developers care about the academic LLM benchmarks and even fewer will switch all their code to a different LLM provider and spend the time implementing it.
0x008 2y ago
They have the highest number of registered and concurrent users of all LLM providers, the best apps and they have deals with Microsoft AND Apple. So I would say they have a solid grip on the market, and a good position to keep it with minimal improvements. Most users don’t care about the best LLM, they will not switch. I mean they probably are not even aware they are using OpenAI because it is just integrated into Office or Siri…

I don't understand the market. By most metrics they don't even have the best LLM, Anthropic do, so why are investors valuing them so highly? Is it because of the strength of their brand?

sfblah 2y ago

We've started using meta.ai and the 200B llama model on a couple servers we run at my company. I really have to go with Zuckerberg's approach on this one. I'm not sure OpenAI and Anthropic really have anything that can't be cloned much more cheaply.

htrp 2y ago
There's a 200bn parameter llama model?
- sfblah 2y ago
  Bleh you're right. I meant the 70B model. I think there's some other context where the number 200 makes sense. Thanks for the correction.
jsheard 2y ago
Zuckerberg's approach may be good for you but it's costing Meta astronomical amounts of money for pretty nebulous benefit to themselves, so I wouldn't count on their current approach continuing forever. Enjoy it while it lasts.
- generalizations 2y ago
  Most of FAANG is effectively in competition with each other; OpenAI might be joining that cohort soon; as long as Facebook can kill their business model, Facebook is keeping a major player out of the running. Zuckerberg will keep doing this for as long as it takes to kneecap or bankrupt OpenAI.
- paxys 2y ago
  > for pretty nebulous benefit to themselves All of Meta's products are increasingly dependent on AI for engagement and ads. Their investments in the space are first and foremost for the benefit of the company itself. So no, they are not going away any time soon.

minimaxir 2y ago

OpenAI's revenue is more diversified than just having the "best" LLM (ChatGPT+, enterprise deals, etc). Only developers care about the academic LLM benchmarks and even fewer will switch all their code to a different LLM provider and spend the time implementing it.

0x008 2y ago

They have the highest number of registered and concurrent users of all LLM providers, the best apps and they have deals with Microsoft AND Apple. So I would say they have a solid grip on the market, and a good position to keep it with minimal improvements. Most users don’t care about the best LLM, they will not switch. I mean they probably are not even aware they are using OpenAI because it is just integrated into Office or Siri…