alt Hacker NewsIt's more like once you figure out how to make a really good lamp then producing lots of lamps will be profitable. But the lamps are currently suboptimal so we'll be in the red until that time.
Replies
ndiddy • yesterday at 11:23 PM
OpenAI won't be able to cut R&D spend and collect rent on their existing models as long as the Chinese models keep up the pace of being ~6 months behind them for a fraction of the price.
rwmj • yesterday at 11:25 PM
And if you wait 12 months, someone will be giving away lamps for free that work just as well.
darth_avocado • yesterday at 11:01 PM
And then someone will come up with lamp pro max and you’ll be out of business. You realize why R&D exists in tech companies even though it’s a cost center right?
It's more like you have a business making engines, each generation of engine has eventually turned out to be profitable over its lifespan, but each generation has an exponentially increasing R&D cost and your customers will switch from the old engines to a competitor if they don't like the newest generation.
You're stuck racing against your competitors with the distinct possibility that your R&D costs will outgrow the market demand, and you can't stop because otherwise your customers will stop investing in your dead end tech and switch.