alt Hacker NewsI don't see them capturing anything at this point. If inference was profitable then they could compete on price/model and capture the market. Then increase price and pay back the model training.
Feels like they are just pulling in as much as they can whilst competing on capabilities instead. At which point its a case of who can last the longest.
Doesn't feel like Uber/Netflix.
They're trying to do it more like a cartel where all major providers raise prices in unison. The intention is (probably) less specific entrapment and more getting people addicted to a fast LLM. From there, they all play with pricing to give a semblance of choice, without actually overly undercutting each other. At least, in the west.
This is all done to help valuations. The main revenue source are the investor dollars at the prospect that this industry will very soon actually be sustainable and highly profitable. It won't be, but if very soon stays around the corner consistently, the investor dollars keep coming.