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I think the article contradicts itself, missing some simple math. Contradicting points: 1. it takes huge and increasing costs to build newer models, models app
by culebron21 2y ago
I think the article contradicts itself, missing some simple math. Contradicting points:
1. it takes huge and increasing costs to build newer models, models approached asymptote
2. a startup can take an open-source model and get you out of business in 18 months (with CocaCola example)
The size of LLM is what protects them from being attacked by startups. Microsoft's operating profit in 2022 was $72B, which is 10x bigger than the running cost of OpenAI. And if 2022 was too successful, profits of $44B still dwarf OpenAI.
If OpenAI manages to ramp up investment like Uber, it may stay alive, otherwise it's tech giants that can afford running some LLM. ...if people will be willing to pay for this level of quality (well, if you integrate it into MS Word, they actually may want it).
- Nemi 2y agoSo riddle me this - Netflix’s revenue is around $9.5B. So a little more than the running costs of OpenAI. Do you think it is plausible that they will be able to get enough people to pay for OpenAI that Netflix? They would need much more revenue than Netflix to make it viable. Considering that there are other options available, like Google’s, MSFT’s, Anthropic’s, etc. As a business model, this is all very suspect. GPT5 has had multiple delays and challenges. What if “marginally better” is all we are going to get? Just food for thought.
- Tarsul 2y agoThat's Netflix's revenue for a single quarter, not year. (nonetheless, your point is relevant)