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deadbabe | on: OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?
People think OpenAI and Anthropic are just these wildly unprofitable companies with no future or business.

They know what they’re doing. The naysayers are like the people that said this little internet thing wasn’t going anywhere.

Loocid | parent | next
>They know what they’re doing. The naysayers are like the people that said this little internet thing wasn’t going anywhere.

There's a big difference between people saying OpenAI/Antropic wont survive and LLMs wont survive. A lot of big early players in the internet space died off as well.

lhd1 | parent | next
Whether you think they have a future or not does not change fact that they currently are wildly unprofitable.

>internet thing wasn’t going anywhere.

This is conflating the utility of the technology with the economics behind it. Few people claim LLMs are useless. It's a question of figuring out a viable business model.

wswx | root | parent
correct.

Commercial airlines are of great value to our lives. Who's questioning or denying that?

Horrible business to be in though.

kingleopold | root | parent | next
they are not horrible business, some of them literally get invested by governments and get extra debt from them too so they can never go bankrupt? if they are at national level airlines, they survive no matter what.

that is not bad business? that is just private profits, socialize loses perfect business?

eeedda | root | parent
A good business is measured by the returns it generates.

They do not generate economic profits.

tonyhart7 | root | parent
Yeah, I think AI model provider would goes the same way commercial airlines does

the money is infrastructure (hardwares, electrics, data etc)

rico735 | parent | next
Might want to Google Global Crossing. The internet survived, but most giant companies did not.
umutsevdi | parent | next
The Internet was profitable, but I'm not connecting to this website from my Solaris Sun Microsystems machine using Netscape Navigator
root_axis | parent | next
> The naysayers are like the people that said this little internet thing wasn’t going anywhere.

The same rhetorical tactic was used to diminish blockchain critics.

loading story #50239196
shooly | parent | next
It sounds like you're just a "yessayer", though? Not much different from naysayers, just on the opposite side.

One thing that naysayers have going on for them is the fact that those companies indeed aren't making profit right now.

deadbabe | root | parent
People get obsessed with wanting companies to profit ASAP.

That's not how you grab market share. Early on, any profit you aren't reinvesting into the business is basically hurting your growth rate.

InsideOutSanta | root | parent
What value has market share if switching costs are close to zero, and alternatives continue to be available?

Grabbing market share by making losses only helps if it actually wins you a genuine monopolistic market position.

wswx | parent
So did the bankers in 2008.

Crazy how delusional people are.

They are in too deep - they have to believe it all works out and act accordingly. lmao.