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I could be wrong, but I believe Amazon's business model was very simple: do everything as cheaply as possible, run at a loss until all competition is dead, and
by paulluuk 2y ago
I could be wrong, but I believe Amazon's business model was very simple: do everything as cheaply as possible, run at a loss until all competition is dead, and then raise prices once we dominate the market.
I don't think OpenAI has that option.
- dukeyukey 2y agoI don't think that's true, even in rural areas without choices Amazon is pretty cheap.
- karmakurtisaani 2y agoAlso, I think Amazon invested everything into growth, for which there was a lot of potential. Seems different for the AI companies.
- delecti 2y agoEh, it's more that per-transaction they were profitable, so they needed to scale enough to make up for their fixed costs. OpenAI's fixed costs are enormous, and they're only bringing in pennies from subscriptions.
- rongrobert 2y agoThis wasn't the business model. The business model was you could sell books over the internet at a much cheaper cost compared to Barnes and Noble or Borders because they weren't paying for physical locations and there was no sales tax on the transactions because it was on the internet.