> The point that the major labs don’t seem to get is that the vast majority of use cases simply don’t need models that have 50 PhDs and can speak 12 languages

I think they understand it but they think they can get away with it because they own the narrative. As long as they can make people believe they need such a model, it doesn't matter if it's true or not.

They are playing the cloud playbook, it didn't matter that most companies didn't need 99,999% uptime and instantaneous horizontal scaling, as long as people believed they did they are happily paying 10-100x the cost to AWS instead.