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Re:Venture Predation: Using venture finance to price below c... by throwaway290 on Friday May 19, 2023 @02:22PM (#36005182)
> And don't forget Amazon. They aren't venture backed but they have access to capital at cheaper rates than most countries

If we are talking about non-venture cases, OpenAI+Microsoft is doing the same with ChatGPT.

Re:Venture Predation: Using venture finance to price below c... by cheschire on Friday May 19, 2023 @03:05PM (#36005670)
There's a nugget of an interesting concept here. I would like to know more, but I would also like to know more from the folks downvoting you as to why they disagree.

Could you please expand on your thought? I know some recent conversation has been had about the potential that open source models have to "win" against Big Tech, so I'd love to know how your thought accounts for that as well.

Re:Venture Predation: Using venture finance to price below c... by throwaway290 on Friday May 19, 2023 @03:24PM (#36005843)
It seems obvious, they are burning through Microsoft's money for now (it was said these chatbots cost way more to run than they make profit) to capture the market and be able to get thick margins later.
Re:Venture Predation: Using venture finance to price below c... by qwytw on Friday May 19, 2023 @04:20PM (#36006407)
> it was said these chatbots cost way more to run than they make profit

Well if it's running on Azure and using massively overpriced Nvidia data center GPUs I can't imagine anything else would be possible. Then again it's not like there any incentive for OpenAI to increase efficiency as long they get 'free' Azure credits (and it's not like the real cost for MS is anything close to what they are supposedly investing into OpenAI. IRRC that 10 billion was mainly not in actual money)

Re:Venture Predation: Using venture finance to price below c... by throwaway290 on Saturday May 20, 2023 @07:42AM (#36011049)
The incentive surely comes from Microsoft, they didn't invest with no expectation of ROI:)