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I think it points to OpenAI trying to pivot to leveraging their brand awareness head start and optimizing for either ads or something like the Jony Ive device-

by awongh 8mo ago

I think it points to OpenAI trying to pivot to leveraging their brand awareness head start and optimizing for either ads or something like the Jony Ive device- focusing on the consumer side. For now people identify LLMs and AI with the ChatGPT brand. This seems like it might be the stickiest thing they can grab ahold of in the long term.

dakolli 8mo ago
Ads in GPT, might literally be the worst business decision ever made. Google can get away with Ads, its expected from them, but not OpenAI
- _aavaa_ 8mo ago
  Sergei and Brin were pretty vocal about the problems with ads and why they don't belong in search engines when they started. The only reason it's expected now is because of a slow boil.
- duskdozer 8mo ago
  They ideally will not want you to realize you're looking at ads.
raw_anon_1111 8mo ago
OpenAI is not going to fund themselves with $20 subscriptions and advertising enough to be profitable.
- gruturo 8mo ago
  > OpenAI is not going to fund themselves with $20 subscriptions and advertising enough to be profitable. Then it's doomed. Which is also my opinion, I don't disagree at all with you.
cael450 8mo ago
Consumer AI is not going to come close to bailing them out. They need B2B use cases. Anthropic is a little better positioned because they picked the most proven B2B use case — development — and focused hard on it. But they'll have to expand to additional use cases to keep up with their spend and valuation, which is why things like cowork exist. But I tend to agree that the ultimate winner is going to be Google. Maybe Microsoft too.
- ghaff 8mo ago
  Consumers en masse aren't going to pay big $$s for AI. Maybe some specific embedded apps as part of other products.
  - WarmWash 8mo ago
    They'll pay $60-$80/mo for it. Just watch. Unless you're totally dumb or a super genius, LLMs can easily provide that kind of monthly value to you. This is already true for most SOTA models, and will only become more true as they get smarter and as society reconfigures for smoother AI integration. Right now we are in the "get them hooked" phase of the business cycle. It's working really damn well, arguably better than any other technology ever. People will pay, they're not worried about that.
    - zozbot234 8mo ago
      It would have to be $60-$80/mo. in value over and above what you could get at the same time with cheap 3rd party inference on open models. That's not impossible depending on what kind of service they provide, but it's really hard.
      - WarmWash 8mo ago
        The average cell phone bill in the US is $135/mo. Plans with unlimited talk/text and 5GB+ of data have been available for <$30 for over a decade now. The AI labs are not worried.
      - ghaff 8mo ago
        I use LLMs now and then but not really regularly. I'm nowhere close to paying for a significant subscription today.
    - gloryjulio 8mo ago
      The value is well worth over $60-$80/mo. But conflating that with the market condition is very different. In the world where you cheap open weight models and free tier closed sources models are flooding the market, you need very good reason to convince regular people to pay for just certain models en masse in b2c market
ChoGGi 8mo ago
> For now people identify LLMs and AI with the ChatGPT brand. > This seems like it might be the stickiest thing they can grab ahold of in the long term. For now, but do you still Xerox paper?

by awongh 8mo ago

dakolli 8mo ago

Ads in GPT, might literally be the worst business decision ever made. Google can get away with Ads, its expected from them, but not OpenAI

_aavaa_ 8mo ago
Sergei and Brin were pretty vocal about the problems with ads and why they don't belong in search engines when they started. The only reason it's expected now is because of a slow boil.
duskdozer 8mo ago
They ideally will not want you to realize you're looking at ads.

raw_anon_1111 8mo ago

OpenAI is not going to fund themselves with $20 subscriptions and advertising enough to be profitable.

gruturo 8mo ago
> OpenAI is not going to fund themselves with $20 subscriptions and advertising enough to be profitable. Then it's doomed. Which is also my opinion, I don't disagree at all with you.

cael450 8mo ago

Consumer AI is not going to come close to bailing them out. They need B2B use cases. Anthropic is a little better positioned because they picked the most proven B2B use case — development — and focused hard on it. But they'll have to expand to additional use cases to keep up with their spend and valuation, which is why things like cowork exist. But I tend to agree that the ultimate winner is going to be Google. Maybe Microsoft too.

ghaff 8mo ago
Consumers en masse aren't going to pay big $$s for AI. Maybe some specific embedded apps as part of other products.
- WarmWash 8mo ago
  They'll pay $60-$80/mo for it. Just watch. Unless you're totally dumb or a super genius, LLMs can easily provide that kind of monthly value to you. This is already true for most SOTA models, and will only become more true as they get smarter and as society reconfigures for smoother AI integration. Right now we are in the "get them hooked" phase of the business cycle. It's working really damn well, arguably better than any other technology ever. People will pay, they're not worried about that.
  - zozbot234 8mo ago
    It would have to be $60-$80/mo. in value over and above what you could get at the same time with cheap 3rd party inference on open models. That's not impossible depending on what kind of service they provide, but it's really hard.
    - WarmWash 8mo ago
      The average cell phone bill in the US is $135/mo. Plans with unlimited talk/text and 5GB+ of data have been available for <$30 for over a decade now. The AI labs are not worried.
    - ghaff 8mo ago
      I use LLMs now and then but not really regularly. I'm nowhere close to paying for a significant subscription today.
  - gloryjulio 8mo ago
    The value is well worth over $60-$80/mo. But conflating that with the market condition is very different. In the world where you cheap open weight models and free tier closed sources models are flooding the market, you need very good reason to convince regular people to pay for just certain models en masse in b2c market

ChoGGi 8mo ago

> For now people identify LLMs and AI with the ChatGPT brand. > This seems like it might be the stickiest thing they can grab ahold of in the long term. For now, but do you still Xerox paper?