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OpenAI is too cheap to beat

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Re: OpenAI is too cheap to beat

#3
Is this a reflection of OpenAI’s massive scale making it so cheap for them?

Or is it the deal with Microsoft for cloud services making it cheap?

Or are they just operating at a massive loss to kill off other competition?

Or something else?

Re: OpenAI is too cheap to beat

#4
I think the weird thing about this is that it's completely true right now but in X months it may be totally outdated advice.

For example, efforts like OpenMOE https://github.com/XueFuzhao/OpenMoE or similar will probably eventually lead to very competitive performance and cost-effectiveness for open source models. At least in terms of competing with GPT-3.5 for many applications.

Also see https://laion.ai/

I also believe that within say 1-3 years there will be a different type of training approach that does not require such large datasets or manual human feedback.

Re: OpenAI is too cheap to beat

#5

Is this a reflection of OpenAI’s massive scale making it so cheap for them? Or is it the deal with Microsoft for cloud services making it cheap? Or are they just operating at a massive loss to kill off other competition? Or something else?

Probably all three:

1) They hiring too talent to make their models as efficient as possible.

2) They have a sweetheart deal with MS.

3) They’re better funded than everyone else and bringing in substantial revenue.

Re: OpenAI is too cheap to beat

#6
post #2

Didn't see batching taken into equation, might skew a bit

Yep, batching is a feature I really wish the OpenAI API had. That and the ability to intelligently cache frequently used prompts. Much easier to achieve this with a hosted OS model, so I guess it's a speed + customizability/cost tradeoff for the time being.

Re: OpenAI is too cheap to beat

#8
post #5

Is this a reflection of OpenAI’s massive scale making it so cheap for them? Or is it the deal with Microsoft for cloud services making it cheap? Or are they just operating at a massive loss to kill off other competition? Or something else?

Probably all three: 1) They hiring too talent to make their models as efficient as possible. 2) They have a sweetheart deal with MS. 3) They’re better funded than everyone else and bringing in substantial revenue.

deleted

Re: OpenAI is too cheap to beat

#9

Is this a reflection of OpenAI’s massive scale making it so cheap for them? Or is it the deal with Microsoft for cloud services making it cheap? Or are they just operating at a massive loss to kill off other competition? Or something else?

Probably the first two, plus first-mover brand recognition. Millions of $20 monthly subs for GPT4 add up.

They might also be operating at a loss afaik, but I suspect they're one of the few that can break even just based on scale, brand recognition, and economics.

Re: OpenAI is too cheap to beat

#10
post #4

I think the weird thing about this is that it's completely true right now but in X months it may be totally outdated advice. For example, efforts like OpenMOE https://github.com/XueFuzhao/OpenMoE or similar will probably eventually lead to very competitive performance and cost-effectiveness for open source models. At least in terms of competing with GPT-3.5 for many applications. Also see https://laion.ai/ I also bel…

> I also believe that within say 1-3 years there will be a different type of training approach that does not require such large datasets or manual human feedback.

I guess if we ignore pretraining, don't sample-efficient fine-tuning on carefully curated instruction datasets sort of achieve this? LIMA and OpenOrca show some really promising results to date.

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