[maxdo]

there literally slew of companies who went in 1 year from mid size business to multi billion ARR.

And yeah, blah blah they burn money blah blah. Check Anthropic CEO interviews. He openly describe the balance problem : - cost of training a new model - newly built infra ratio of training vs inference - market adoption, that is despite extremely quick is not unlimited, since even market is not unlimited.

essentially it's a tricky balance, between you do not invest today you will loose tomorrow vs you invest too much and go bankrupt next year.

[interestpiqued]

The problem is, part of their whole appeal is being on the "frontier" of model development. So what happens when scaling gets too expensive or we reach some sort of end state for LLMs? They will lose their differentiation and it seems like a non negligible chance their pricing power collapses. The entire reason they make so much money is because they spend so much to be on the frontier.

[viking123]

This is the same CEO that is selling a room full of old boomers that AI will double their lifespan? Oh yeah it's that guy..