Re:Ilya Sutskever's SSI Inc raises $1B
by steveBK123 on Wednesday September 04, 2024 @08:06PM
(#41452132)
Hard to see normies signing up for monthly subs to VC funded AI startups when a surprisingly large % still are resistant to paying AAPL/GOOG for email/storage/etc. Getting a $10/mo uplift for AI functionality to your iCloud/GSuite/Office365/Prime is a hard enough sell as it stands.
And again this against CapEx of something like $200B means $100/year per user is practically rounding to 0.
Not to mention the OpEx to actually run the inference/services on top ongoing.
Re:Ilya Sutskever's SSI Inc raises $1B
by thruway516 on Wednesday September 04, 2024 @09:58PM
(#41452773)
You'd be very surprised at how much they're raking in from the small sliver of people who do pay. It only seems small just because of how much more they make from other things. If you have a billion users, a tiny percentage of paying users is still a gazillion dollars. Getting to a billion users is the hard part. Theyre betting theyll figure how to monetize all those eyeballs when they get there.
Feels very different to me. The dominant ones are run by Google, Apple, and Amazon, and the voice assistants are mostly add-on features that don't by themselves generate much (if any) revenue (well, aside from the news that Amazon wants to start charging for a more advanced Alexa). The business model there is more like "we need this to drive people to our other products where they will spend money; if we don't others will do it for their products and we'll fall behind".
Sure, these companies are also working on AI, but there are also a bunch of others (OpenAI, Anthropic, SSI, xAI, etc.) that are banking on AI as their actual flagship product that people and businesses will pay them to use.
Meanwhile we have "indie" voice assistants like Mycroft that fail to find a sustainable business model and/or fail to gain traction and end up shutting down, at least as a business.
I'm not sure where this is going, though. Sure, some of these AI companies will get snapped up by bigger corps. I really hope, though, that there's room for sustainable, independent businesses. I don't want Google or Apple or Amazon or Microsoft to "own" AI.