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ChatGPT loses billions of dollars, $5bn this year alone just on running the service. Even the subscription-based services like Github Copilot are losing money,

• disqard 2y ago
  The gameplan is simple: * Capture the market (like Uber), by doing whatever it takes to be successful (e.g. offer your services at 1/3rd of what it costs) -- flush the equivalent of several countries' GDP down the toilet, if necessary. * Wait for everyone to use only your service (because it's like water??) * Raise rates (hopefully, everyone is "locked-in" at this point) * Profit!
  • marcosdumay 2y ago
    What is amazing is that the LLM market is already comoditized and in a race to the bottom, so step #1 can only be done by dumping. Also, it has almost no barriers to entry (AFAIK, closing a deal with NVidia is the largest one right now), so you can't do step #3.
  • mrbungie 2y ago
    Oh yeah, directly from the Softbank ventures playbook. Spoiler: it does not work as well as they hope. Plus, we're talking about hyperscalers/big techs here, that would mean a commercial attrition war where OAI would be competing with actors such as Meta giving it for free from already existing platforms that have different main income sources (ig, fb, whatsapp). Good luck with that.