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0 pointssegasaturn1y ago0 comments

This is what I was wondering reading that comment too. The only people I've seen making money off LLMs are spammers.

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5 comments · 1 top-level

scotty791y ago· 4 in thread

ChatGPT itself

ChatGPT loses billions of dollars, $5bn this year alone just on running the service. Even the subscription-based services like Github Copilot are losing money, $20 lost for every $10 subscriber according to MSFT. The only ones making money I can see are NVidia and maybe the oil and gas companies...

disqard1y ago

The gameplan is simple:

* Capture the market (like Uber), by doing whatever it takes to be successful (e.g. offer your services at 1/3rd of what it costs) -- flush the equivalent of several countries' GDP down the toilet, if necessary.

* Wait for everyone to use only your service (because it's like water??)

* Raise rates (hopefully, everyone is "locked-in" at this point)

* Profit!

marcosdumay1y ago

What is amazing is that the LLM market is already comoditized and in a race to the bottom, so step #1 can only be done by dumping.

Also, it has almost no barriers to entry (AFAIK, closing a deal with NVidia is the largest one right now), so you can't do step #3.

mrbungie1y ago

Oh yeah, directly from the Softbank ventures playbook. Spoiler: it does not work as well as they hope.

Plus, we're talking about hyperscalers/big techs here, that would mean a commercial attrition war where OAI would be competing with actors such as Meta giving it for free from already existing platforms that have different main income sources (ig, fb, whatsapp). Good luck with that.

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