OpenAI's tight spot: 1) They are far from profitability. 2) Meta is aggressively making their top talent more expensive, and outright draining it. 3) Deepseek/Baidu/etc are dramatically undercutting them. 4) Anthropic and (to a lesser extent?) Google appear to be beating them (or, charitably, matching them) on AI's best use case so far: coding. 5) Altman is becoming less like-able with every unnecessary episode of dr…
They have majority of the attention and market cap. They have runway. And that part is the most important thing. Others don’t have the users to grand test developments.
XAI has Elon's fortune to burn, and Spacex to fund it.
Gemini has the ad and search business of Google to fund it.
Meta has the ad revenue of IG+FB+WhatsApp+Messenger.
Whereas OpenAI $10 billion in annual revenue, but low switching costs for both consumers and developers using their APIs.
If you stay at the forefront of frontier models, you need to keep burning money like crazy, that requires raising rounds repeatedly for OpenAI, whereas the tech giants can just use their fortunes doing it.