Re:Investors Are Happy to Pay Premium for Tech, but Not for AI
by mach1ne on Monday July 31, 2023 @01:08PM
(#36945671)
Depends on what you mean by ’wrapper’. For most AI startups it isn’t viable to train their own models. For most customer use-cases, ChatGPT interface isn’t enough. Wrappers are currently the only logical implementation of AI to production.
[ Parent
| on HN ]
Re:Investors Are Happy to Pay Premium for Tech, but Not for AI
by ska on Monday July 31, 2023 @01:10PM
(#36945713)
This is approximately true at the moment - but it's an open question how much that is worth to customers. The market will sort it out, but it's not clear that all of these "wrapper" startups have a workable business model.
Re:Investors Are Happy to Pay Premium for Tech, but Not for AI
by mach1ne on Monday July 31, 2023 @01:14PM
(#36945772)
True, especially regarding how easily their services can be replicated. Their margins are low, and customer acquisition does not provide them with network effects that would yield a moat.