alt Hacker NewsI’m confused why AI companies are using agents in-house for this type of research instead of partnering externally.
I guess the improvement loop is tighter and they have more control over how discoveries can be used for marketing?
But, in my mind, it begins to feel like they are setting themselves up to be “everything” companies instead of focusing on their core product…
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A chatbot for cancer researchers to talk to is worth single-digit billions at most. Anthropic is already valued at over a trillion dollars, on the premise that they can replace the majority of jobs in most knowledge industries. All the announcements about hacking / math problems / biological science are meant to create the impression that that strategy works and is repeatable across industries.
I was actually thinking the other day that it makes perfect sense for AI companies to develop a professional services oriented software development arm. Imagine that you want to develop a training pipeline for "tasteful" programming: you might make a reward metric for that does some obvious stuff (nothing that anyone could easily agree is a bug like a crash, good performance, perhaps minimize LoC), but you really want to also want to also track "bugs" where the feature was discovered to be missing some unspecified nuance that was only discovered through product use, or train on ability to keep a small codebase while also keeping diffs small (essentially, "maintainability") as real new requirements come in.
So then you want a training set full of real product requirements and product evolution, which is something you could get if you offered custom software development, with a lot more control than you'd get trying to do the same by scraping random FOSS projects on github.
Other industries are perhaps similar. If you offer a service directly, you have much more ability to build collection of training data into the process. Want to make the best law bot? Buy a law firm, offer legal services, and integrate extremely deeply into their workflows. If their models turn out to be as good as they hype up, they should be able to scale to be a major player in any endeavor they move into with a relatively small number of staff and develop a strong feedback loop (not that that would be good for the rest of us).
Because the goal is marketing and maxxing the IPO, not real-world results.
"Everything" is the core product if you are developing AGI
If your core service is getting more expensive to provide and competitors are busy eating your margins, why let someone else taste your secret sauce and only get paid for the tokens, when you can keep the good stuff (bio capability) for yourself, and net both the profit and the fame?
They’re trying to pivot into verticals because being a "dumb model provider" has no real moat any longer.
External partners don't trust the AI companies I think to not steal their work and the partner's moat
If an amazing drug or other therapeutic falls out of this I bet they would be happy to own it outright.
Because clients don’t know how to use the tools.
I run into this all the time - we have such powerful functionality available to our users, and further we provide the elements that undergird all of it, so it’s totally possible for clients to take the services they buy from us and reconfigure them to make their own tools, better even than the ones we have built, purpose-built for their workflows…
And 9/10 clients will just click on the one thing they know and recognize and are familiar with and comfortable with… and then stop thinking about it.
It’s crazy how much of our job is not only building our product, but interrogating our clients over what they need, so we can demonstrate how our tools solve their problem. The users simply are not interested in figuring it out for themselves.
Relevant: "Anthropic quietly sets up biology lab as it ramps AI drug program"
https://www.reuters.com/world/anthropic-quietly-sets-up-biol...
Because their core product is not a long-term sustainable business strategy. Local hardware and models will continue to improve to the point of not needing the hosted solutions. And if you do need a hosted solution, remember that the big cloud providers already offer these solutions, so signing up for OpenAI/Anthropic _and_ AWS/GCP/Azure is not a sound business decision compared to just signing up with 1 of them that offers your cloud infra + GenAI infra. (Which is why the long-term benefits for cloud companies will probably be for the likes of AWS and not the likes of OpenAI).
They'll continue to burn money for marginal model improvements in the next few years all the while having no moat _and_ having Open-Weight / Local models eat their lunch.
The only way for them to stay relevant as a company is to expand beyond simply providing the models.