hgyyy

Many firms are going to go bust because of dangerous assumptions they made re. Expectations of llm improvements.

And they will deserve it.

Profit is what drives the survival of the firm to be fair

However there are tasteful ways of doing it. And google and meta in particular certainly are not.

I think OAI and Anthropic will be ok for a year or two. But after that If they still continue to earn revenues from selling tokens to firms/software engineers they will be in serious trouble.

The American firms are not demonstrating escape velocity and as long as china offers something somewhat comparable and offers it at a very low price to compensate for any difference in quality, they will not be generating enough in cash flows to finance reinvestment. I highly doubt they’ll be able to continue raising external financing for numerous periods from here on out - they gotta start showing strong financials and that they are running away from the open source models.