The competition for big LLM AI companies is not other big LLM AI companies, but rather small LLM AI companies with good enough models. This is a classic innovator dilemma.
For example, I can imagine a team of cardiologists creating a fine tune LLM model.
Do AI companies work?
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Re: Do AI companies work?
#12This article, and all the articles like it, are missing most of the puzzle. Models don’t just compete on capability. Over the last year we’ve seen models and vendors differentiate along a number of lines in addition to capability: - Safety - UX - Multi-modality - Reliability - Embeddability And much more. Customers care about capability, but that’s like saying car owners care about horsepower — it’s a part of the cho…
To me, the vast majority of "consumers" as in B2C only care about price, specifically free. Pro and enterprise customers may be more focused on the capabilities you listed, but the B2C crowd is vastly in the free tier only space when it comes to GenAI.
Re: Do AI companies work?
#13This is like when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on. I love it. More goodies for us
What goodies can I get from AI companies though?
Your own GPL unencumbered regurgitations of popular GPL libraries and applications.
Re: Do AI companies work?
#14This is like when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on. I love it. More goodies for us
> when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on
I’m reminded of slime molds solving mazes [1]. In essence, VC allows entrepreneurs to explore the solution space aggressively. Once solutions are found, resources are trimmed.
[1] https://www.mbl.edu/news/how-can-slime-mold-solve-maze-physi...
Re: Do AI companies work?
#15This is like when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on. I love it. More goodies for us
No, it means creating a bunch of unprofitable businesses that make it really hard for folks trying to build a sustainable business without VC money.
> that make it really hard for folks trying to build a sustainable business without VC money
LLMs are capital intensive. They’re a natural fit for financing.
Re: Do AI companies work?
#16This is like when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on. I love it. More goodies for us
No, it means creating a bunch of unprofitable businesses that make it really hard for folks trying to build a sustainable business without VC money.
Yep, you will probably lose. The VCs aren't out there to advance the technology. They are there to lay down bets on who's going to be the winner. "Winner" has little to do with quality, and rides much more on being the one that just happens to resonate with people.
The ones without money will usually lose because they get less opportunity to get in front of eyeballs. Occasionally they manage it anyway, because despite the myth that the VCs love to tell, they aren't really great at finding and promulgating the best tech.
Re: Do AI companies work?
#17This is like when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on. I love it. More goodies for us
> when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on I’m reminded of slime molds solving mazes [1]. In essence, VC allows entrepreneurs to explore the solution space aggressively. Once solutions are found, resources are trimmed. [1] https://www.mbl.edu/news/how-can-slime-mold-solv…
VC is the worst possible way to fund entrepeneurs.
Except for all the others.
Re: Do AI companies work?
#18This is like when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on. I love it. More goodies for us
I'm already keeping an eye on what NVidia gets into next... because that will inevitably be the "Next big thing". This is the third(ish) round of this pattern that I can recall, I'm probably wrong about the exact count, but NVidia is really good at figuring out how to be powering the "Next big thing". So alternatively... I should probably invest in the utilities powering whatever Datacenters are using the powerhungry…
There's a saying in the stock market that probably applies here: past performance does not indicate future performance.
Getting lucky twice is a row is really really lucky. Getting lucky three times in a row is not more likely because they were lucky two times in a row
Re: Do AI companies work?
#19This is like when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on. I love it. More goodies for us
That's exactly the short term thinking they're hoping they can use to distract.
Tech companies purchased television away from legacy media companies and added (1) unskippable ads, (2) surveillance, (3) censorship and revocation of media you don't physically own, and now they're testing (4) ads while shows are paused.
There's no excuse for getting fooled again.
Re: Do AI companies work?
#20This article, and all the articles like it, are missing most of the puzzle. Models don’t just compete on capability. Over the last year we’ve seen models and vendors differentiate along a number of lines in addition to capability: - Safety - UX - Multi-modality - Reliability - Embeddability And much more. Customers care about capability, but that’s like saying car owners care about horsepower — it’s a part of the cho…
To me, the vast majority of "consumers" as in B2C only care about price, specifically free. Pro and enterprise customers may be more focused on the capabilities you listed, but the B2C crowd is vastly in the free tier only space when it comes to GenAI.
You may be forgetting that ChatGPT has 10M paying customers. Not to mention everyone that pays for Claude Pro, Perplexity Pro, and so on.