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Amazon as in AWS is possibly a better analogy. What AWS sells is mostly commodity. Their moat is the cost of integration. Once a company has developed all its s
by cm2187 2y ago
Amazon as in AWS is possibly a better analogy. What AWS sells is mostly commodity. Their moat is the cost of integration. Once a company has developed all its system around AWS, they are locked in, just because of the integration cost of switching. OpenAI only sells a single component, so the lock in is weaker. But once you have a business a company depends on which has been tested and relies on OpenAI, I can see them thinking twice about switching. Right now, I doubt we are near that stage, so my vote is on no moat yet.
- dartos 2y agoMany cloud native companies have realized they his and are actually moving off of public clouds. It’s slow and painful, but the expense is driving some customers away.
- esafak 2y agoI think any decent company would be using LLMs through an interface, so they can swap out providers, same as any API.
- cm2187 2y agoThat's fair, but different LLM behave differently, so you would have to redo your testing from scratch if you were to swap the model. I think that would be the primary problem.
- esafak 2y agoTesting for LLMs is an evolving practice but you need to have tests even if you stick with one provider, otherwise you won't be able to swap out models safely within that provider either.