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When they are focusing on just being an API provider then they will be in a market with (long term) razor thin margins and high competition - most likely unable
by jcfrei 2y ago
When they are focusing on just being an API provider then they will be in a market with (long term) razor thin margins and high competition - most likely unable to build a deep moat. But if you can shape customers habits to always input "chatgpt.com" into the browser whenever they want to use AI then that's a very powerful moat. Those customers will also most likely be on a subscription basis, meaning much more flexibility in pricing and more rent for openAI (people using it less then what OpenAI calculates for subscription costs).
- aixpert 2y agoYour argument, which could be correct, makes their choice of the name ChatPGT* even more idiotic * Or which ever variant the average user might try to type in
- movedx 2y agoThis sounds like a good way of guaranteeing profits and moving the mindset away from just producing good products.
- adventured 2y agoThe difference between Google had it just tried to be an enterprise search API, versus owning the consumer destination for search input/results.
- cynicalpeace 2y agoGoogle will be a remembered as a victim of Schumpeter's Creative Destruction
- james_marks 2y agoFrom Wikipedia, for that don’t know the term: “a concept in economics that describes a process in which new innovations replace and make obsolete older innovations.” Ironically, I had to google it, and agree with the comment.
- LifeIsBio 2y agoI'm usually pretty verbose with prompts, so I wanted to see what chatgpt would do with just a "Schumpeter's Creative Destruction" https://chatgpt.com/share/66ff28e2-ea74-800b-a230-86d562f60f87 https://chatgpt.com/share/66ff28e2-ea74-800b-a230-86d562f60f...
- james_marks 2y agoNot bad. I do love the ability to share a chatGPT thread. I haven’t found that yet in Claude and would use it.
- satvikpendem 2y agoYou should read The Innovator's Dilemma as well, as it goes into detail on this concept, basically explaining why and how technological disruption occurs from the point of view of the disruptor and disruptee.
- james_marks 2y agoI agree, and it’s why I have come to dislike OpenAI. We are getting front row seats to an object lesson in “absolute power corrupts absolutely”, and I am relieved they have a host of strong competitors.