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If these numbers are true then OpenAI is probably done, Anthropic too. Still, it's hard to see an effective monetization method for this tech and it clearly is
by margorczynski 11mo ago
If these numbers are true then OpenAI is probably done, Anthropic too.
Still, it's hard to see an effective monetization method for this tech and it clearly is eating Google's main pie which is search.
- Sol- 11mo agoWhy? These models just leapfrog each other as time advances. One month Gemini is on top, then ChatGPT, then Anthropic. Not sure why everyone gets FOMO whenever a new version gets released.
- remus 11mo agoI think google is uniquely well placed to make a profitable business out of AI: They make their own TPUs so don't have to pay ridiculous amounts of money to Nvidia, they have a great depth of talent in building models, they've got loads of data they can use for training and they've got a huge existing customer base who can buy their AI offerings. I don't think any other company has all these ingredients.
- gizmodo59 11mo agoWhile I don’t disagree that Google is the company you can’t bet against when it comes to AI, saying other companies are done is a stretch. If they have a significant moat then they should be at the top all the time by then which is not the case though.
- remus 11mo agoAgreed, too early to write off others entirely. It'll be interesting to see who comes out the other side of the bubble with a working business.
- adriand 11mo agoAnthropic has a fairly significant lead when it comes to enterprise usage and for coding. This seems like a workable business model to me.
- bootlooped 11mo agoI feel this is a tenuous position though. I find it incredibly easy to switch to Gemini CLI when I want a second opinion, or when Claude is down.
- adriand 11mo agoThe enterprise sales cycle is often quite long, though, and often includes a lot of hurdles around compliance, legal, etc. It would take a fairly sustained loss of edge before a lot of enterprises would switch once they're hooked into a given platform. It's interesting to me that Sonnet 4.5 still edges Gemini 3 on SWE bench. This seems to bode well for the trajectory that Anthropic is on.
- basch 11mo agoChatGPT's moat is their name and user habit. People who are using it will keep using it. All/most of the products are _good enough_ for the people who already got used to using them, that they arent exploring competitors. Microsoft has the chance of changing habit the most by virtue of being bundled into business contracts that have companies with policies not allowing any other product in the workplace.
- netdevphoenix 11mo ago> business contracts that have companies with policies not allowing any other product in the workplace. Elaborate please. Are you saying that MS is forcing customers to make Copilot the only allowed LLM product?
- basch 11mo agoNot quite, but in effect. Microsoft has contracts to provide software to companies. Companies have policies that only provided software and ai is allowed. Ipso facto
- remus 11mo ago> ChatGPT's moat is their name and user habit. People who are using it will keep using it. All/most of the products are _good enough_ for the people who already got used to using them, that they arent exploring competitors. They have a long way to go to become profitable though. Those users will get less sticky when openAI starts upping their pricing/putting ads everywhere/making the product worse to save money/all of the above.
- mlnj 11mo ago100% the reason I am long on Google. They can take their time to monetize these new costs. Even other search competitors have not proven to be a danger to Google. There is nothing stopping that search money coming in.
- spaceman_2020 11mo agoThe bear case for Google was always the business side would cannibalize the AI side. AI makes search redundant which kills the golden goose
- Zigurd 11mo agoThe TPU are a key factor. They are the most mature alternative to Nvidia. Only Google cloud, Azure, and AWS enable you to rent their respective AI chips. Out of those three, google is the only one to have a frontier model. So if they have a real advantage they're not exposed to the financial shenanigans propping up neo clouds like Coreweave.
- astrange 11mo agoMaking your own stuff is definitely not always economically better. Google has the same supplier cost pressure as Nvidia for DRAM, fabs, etc.
- redox99 11mo agoConsidering GPT 5 was only recently released, it's very unlikely GPT will achieve these scores in just a couple of months. If they had something this good in the oven, they'd probably left the GPT 5 name to it. Or maybe Google just benchmaxxed and this doesn't translate at all in real world performance.
- Palmik 11mo agoGPT 5 was released more than 3 months ago. Gemini 2.5 was released less than 8 months ago.
- sidibe 11mo agoIf not this model, Google at some point is going to get and stay ahead just because they have so many more people and compute resources they can throw at many directions while the others have to make the right choices with how they use their resources each time. Took a while to channel their numbers into a product direction but now I don't think they're going to let up
- blueblisters 11mo agoThey do have unreleased Olympiad Gold-winning models that are definitely better than GPT5. TBD if that performance generalizes to other real world tasks.
- happa 11mo agoThis may just be bad recollection from my part, but hasn't Google reported that their search business is right now the most profitable it has ever been?
- senordevnyc 11mo ago1) New SOTA models come out all the time and that hasn't killed the other major AI companies. This will be no different. 2) Google's search revenue last quarter was $56 billion, a 14% increase over Q3 2024.
- margorczynski 11mo ago1) Not long ago Altman and the OpenAI CFO were openly asking for public money. None of these AI companies have actually any kind of working business plan and are just burning investor money. If the investors see there is no winning against Google (or some open Chinese model) the money will dry up. 2) I'm not suggesting this will happen overnight but especially younger people gravitate towards LLM for information search + actively use some sort of ad blocking. In the long run it doesn't look great for Google.
- senordevnyc 11mo agoNo, you suggested that LLMs are clearly eating google's lunch already, and there's just no evidence of that. Quite the opposite.
- paswut 11mo agoI'd love to see anthropic/openai pop. back to some regular programming. the models are good enough, time to invest elsewhere
- ilaksh 11mo agoThe only one it doesn't win is SWE bench which it is significantly behind Claude Sonnet. You just can't take down Sonnet.
- stavros 11mo agoCodex has been much better than Sonnet for me.
- dotancohen 11mo agoOn what types of tasks?
- svantana 11mo agoOne percentage point is not significant, neither in the colloquial nor the scientific sense[1]. [1] Binomial formula gives a confidence interval of 3.7%, using p=0.77, N=500, confidence=95%
- lukev 11mo agoOr else it trained/overfit to the benchmarks. We won't really know until people have a chance to use it for real-world tasks. Also, models are already pretty good but product/market fit (in terms of demonstrated economic value delivered) remains elusive outside of a couple domains. Does a model that's (say) 30% better reach an inflection point that changes that narrative, or is a more qualitative change required?
- alecco 11mo agoFor SWE it is the same ranking. But if Google's $20/mo plan is comparable to the $100-200 plans for OpenAI and Anthropic, yes they are done. But we'll have to wait a few weeks to see if the nerfed model post-release is still as good.
- deleted 11mo ago[deleted]
- siva7 11mo agoI have a few secret prompts to test complex reasoning capabilities of new models (in law and medicine). Gemini (2.5 pro) is by a wide margin behind Anthropic (sonnet 4.5 basic thinking) and Openai (pro model) on my own benchmark and I trust my own benchmark more than public leaderboards. So it's the other way around. Google is trying to catch up where the others are. It just doesn't seem so to some because Google undercuts prices and most people don't have own complex problems with a verified solution to test against (so they could see how bad Gemini is in reality)
- alecco 11mo agoThis thread is about Gemini 3. It will be interesting to see your benchmark results when it's available later.
- llm_nerd 11mo agoThey're constantly matching and exceeding each other. It's a hypercompetitive space and I would fully expect one of the others to top various benchmarks shortly after. On pretty much every leading release someone does this "everyone else is done! Shut er down" thing and it's growing pretty weird. Having said that, OpenAI's ridiculous hype cycle has been living on borrowed time. OpenAI has zero moat, and are just one vendor in a space with many vendors, and even incredibly competent open source models by surprise Chinese entrants. Sam Altman going around acting like he's a prophet and they're the gatekeepers of the future is an act that should be super old, but somehow fools and their money continue to be parted.
- netdevphoenix 11mo agoThis. If I had to put my money on a survivor, it would be Google because it is an established company with existing revenue modules unrelated to AI. Anthropic and OpenAI won't stand alone without external funding