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Companies in the business of building models are forced to innovate on two things at once. 1. Training the next generation of models 2. Providing worldwide sc
by themanmaran 2y ago
Companies in the business of building models are forced to innovate on two things at once.
1. Training the next generation of models
2. Providing worldwide scalable infrastructure to serve those models (ideally at a profit)
It's hard enough to accomplish #1, without worrying about competing against the hyperscalers on #2. I think we'll see large licensing deals (similar to Anthropic + AWS, OpenAI + Azure) as one of the primary income sources for the model providers.
With the second (and higher margin) being user facing subscriptions. Right now 70% of OpenAI's revenue comes from chatgpt + enterprise gpt. I imagine Anthropic is similar, given the amount of investment in their generative UI. At the end of the day, model providers might just be consumer companies.