alt Hacker NewsAI was always going to be a race to the bottom and low margins. It’s why I’m extremely bearish on AI as an investment. It’s framed as some high margin business when it’s really going to end up like your toilet paper at Costco. You will use whatever is cheapest and gets the job done.
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XenophileJKO • today at 3:18 AM
I used to think this.. but I think my opinion is changing. The reason is that the leaders likely will be able to accelerate faster.
So what you see is the market "stretching".. the bottom getting cheaper and the top end running away and getting more expensive. At some point the top end may be too valuable to even sell access to.
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Correct.
And the value-add experiences that utilise LLMs require immense imagination et al that folks at Anthropic will not be able to conceive of - given that they have made immense sunk investments in existing assets. This clouds ones thinking immensely.
Both OAI and Anthropic have tremendous failure risk and this is of course not reflected in the fake private market valuations.
I see a world where lots of stuff is mass produced in china (tokens) but the acutal goods that deliver the experiences are designed, marketed and sold in the west at much higher prices. of course this a nightmare scenario for anthropic et al.