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0 pointsawongh4mo ago0 comments

I think it points to OpenAI trying to pivot to leveraging their brand awareness head start and optimizing for either ads or something like the Jony Ive device- focusing on the consumer side.

For now people identify LLMs and AI with the ChatGPT brand.

This seems like it might be the stickiest thing they can grab ahold of in the long term.

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11 comments · 4 top-level

cael4504mo ago· 4 in thread

Consumer AI is not going to come close to bailing them out. They need B2B use cases. Anthropic is a little better positioned because they picked the most proven B2B use case — development — and focused hard on it. But they'll have to expand to additional use cases to keep up with their spend and valuation, which is why things like cowork exist.

But I tend to agree that the ultimate winner is going to be Google. Maybe Microsoft too.

ghaff4mo ago

Consumers en masse aren't going to pay big $$s for AI. Maybe some specific embedded apps as part of other products.

WarmWash4mo ago

They'll pay $60-$80/mo for it. Just watch.

Unless you're totally dumb or a super genius, LLMs can easily provide that kind of monthly value to you. This is already true for most SOTA models, and will only become more true as they get smarter and as society reconfigures for smoother AI integration.

Right now we are in the "get them hooked" phase of the business cycle. It's working really damn well, arguably better than any other technology ever. People will pay, they're not worried about that.

3 more replies

surgical_fire4mo ago

It doesn't matter. I firmly believe both OpenAI and Anthropic are toast. And I aay this as someone that uses both Codex and Claude primarily.

I really dislike Google, but it is painfully obvious they won this. Open AI and Anthropic bleed money. Google can bankroll Gemini indefinitely because they have a very lucrative ad business.

We can't even argue that bankrolling Gemini for them is a bad idea. With Gemini they can have yet another source of data to monetize users from. Technically Gemini can "cost" them money forever, and it would still pay for itself because with it they can know even more data about users to feed their ad business with. You tell LLMs things that they would never know otherwise.

Also, they mostly have the infrastructure already. While everyone spends tons of money to build datacenters, they have those already. Hell, they even make money by renting compute to AI competitor.

Barred some serious unprecedented regulatory action against them (very unlikely), I don't see how they would lose here.

Unfortunately, I might add. i consider Google an insidiously evil corporation. The world would be much better without it.

wolvoleo4mo ago

They also have tons of data on the users' habits and desires which they can use to inform the AI with each specific user's preferences without them having to state them. Because so many people use Google maps, Gmail etc. It's not just about training data but also operational context. The others lack this kind of long-term broad user insight.

I'm not using Google services much at all and I don't use Gemini but I'm sure it will serve the users well. I just don't want to be datamined by a company like Google. I don't mind my data improving my services but I don't want it to be used against me for advertising etc.

dakolli4mo ago· 2 in thread

Ads in GPT, might literally be the worst business decision ever made. Google can get away with Ads, its expected from them, but not OpenAI

_aavaa_4mo ago

Sergei and Brin were pretty vocal about the problems with ads and why they don't belong in search engines when they started.

The only reason it's expected now is because of a slow boil.

duskdozer4mo ago

They ideally will not want you to realize you're looking at ads.

raw_anon_11114mo ago· 1 in thread

OpenAI is not going to fund themselves with $20 subscriptions and advertising enough to be profitable.

gruturo4mo ago

> OpenAI is not going to fund themselves with $20 subscriptions and advertising enough to be profitable.

Then it's doomed. Which is also my opinion, I don't disagree at all with you.

ChoGGi4mo ago

> For now people identify LLMs and AI with the ChatGPT brand.

> This seems like it might be the stickiest thing they can grab ahold of in the long term.

For now, but do you still Xerox paper?

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