alt Hacker NewsI know what happens in many big companies and not a single one is moving away from Anthropic/OpenAI/SpaceXAI.
> Unless they both dramatically slash prices then they’re in big trouble
False, they have already done so many times.
> Neither of them can afford to do that and both desperately need to convince the street that the opposite will happen if they want any hope at a successful IPO.
False, margins are higher and I can have a formal bet that prices will go lower.
> However the cold reality for both is that there is zero moat to a model anymore
False, LLMs are not fungible and there exists a natural moat. I like the behaviour of Fable, not the behaviour of Opus - the fact that many people speak about this is evidence.
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I don’t know what your sources are, but I work on AI at a Fortune 100 and open models now make up >90% of our internal token spend. Used to be 100% closed before this summer.
> like the behaviour of Fable, not the behaviour of Opus - the fact that many people speak about this is evidence.
I'm wondering how much of that is the harness vs the model. Overall, the 'feel' of a model seems to be largely due to the harness than the model itself.
They kind of are fungible, up to a certain level of task. And much like most software developers don't need to exercise deep comp sci skills, most sw engineering doesn't have tasks that require the best models.
> I can have a formal bet that prices can go lower
Is this a typo? Have you actually made a formal bet on a prediction market or something to put your money where your mouth is, or are you just saying that you could? There's a lot of things I could plausibly make bets on, but that doesn't mean that they're likely to happen.
Not sure who you’re talking to but the NYTimes reporting clearly refutes your statements that nobody is doing it with clear facts. It’s been a tidal shift in attitudes over these last few months and the messaging back to OpenAI and Anthropic has been clear. Slash your prices by an order of magnitude or you’re done for most use cases.
We’re heading into corporate budget season for 2027 when all this is coming under a huge microscope in boardroom after boardroom across the country at a terrible time for companies trying to IPO.