They know that LLMs as a product are racing towards commoditization. Bye bye profit margins. The only way to win is regulation allowing a few approved providers.

▲

fuzzy_biscuit an hour ago | parent | next [-]

They are more likely trying to race towards wildly overinflated government contracts because they aren't going to profit how they're currently operating without some of that funny money.

▲

delusional an hour ago | parent | prev | next [-]

What profit margins?

	▲	Deegy 30 minutes ago \| parent \| next [-]
		It is unclear. Everyday I seem to read contradictory headlines about whether or not inference is profitable. If inference has significant profitability and you're the only game in town, you could do really well. But without regulation, as a commodity, the margin on inference approaches zero. None of this even speaks to recouping the R&D costs it takes to stay competitive. If they're not able to pull up the ladder, these frontier model companies could have a really bad time.
	▲	kibwen an hour ago \| parent \| prev \| next [-]
		It's still technically a profit margin if it's less than zero...
	▲	JKCalhoun 17 minutes ago \| parent \| prev [-]
		Perhaps P/E ratios?

▲

flir an hour ago | parent | prev [-]

The only way to win is commoditize your complement (IMO).

	▲	pclmulqdq an hour ago \| parent [-]
		That's a good line but it only works if market forces don't commoditize you first. Blithely saying "commoditize your complement" is a bit like saying "draw the rest of the owl."