alt Hacker News> "Frontier models" are caught in a financial dilemma of their own making --- they have spent such huge sums on development and as a result, they may have inadvertently priced themselves out of the market.
I feel it'll wind up like the dotcom/fiber bubble. Way too much money poured into it, lots of expensive bankruptcies or write-offs, and a readjusted market sea level.
Absolutely. We are in a phase of "free money" for AI. Just as with the dotcom bubble that leads to 1) lots of experimentation, and 2) lots of infrastructure buildout (which includes AI model training). Once the money dries up, some infrastructure (including models) will turn out to be profitable, most won't. And some experiments will turn out to be successful, most won't. Lots of useful things will come out of that, both the failed and the successful attempts. Just as the dotcom boom payed real dividends 5-10 years later and laid the groundwork for the world we have today