Even amortized over a few years, they clearly expect to be able to raise prices soon. If Microsoft stops laundering revenue through OpenAI, and as Stability switches away from free stuff, the best AI tools are about to get a lot more expensive.
Raise prices on what? There are barely any revenue generating AI products with a line of paying customers. I look around an I still don’t see anything. At the end of the day there have to be viable business models at the end of the line in order to support all this otherwise this too is just a house of cards.
I think they will have to build actual products instead of just making a model available and having customers figure out something useful to do with it.
My understanding is that the APIs are profitable, and the best alternative (spin up mixtral on cloud provider) isn't that expensive. So there's some downward pressure there.
I expect ChatGPT is priced right where anthropic and OpenAI want. It's generating cash, and if you're a heavy user they can rate limit or offer a higher tier
Nah it’s the opposite. At the moment there’s a lot of low hanging fruit, AI companies can make money from the difference between GPT4 and free models.
Once we get free models that are as good as GPT4, while there will still be a market for a “GPT5”, the current applications will experience serious price competition.
It doesn’t matter, if you can run Llama3/4 on commodity hardware is what I’m saying.
If I can fulfill my objectives with a commodity model with GPT-4 capabilities then I’m not going to pay any $$$ for GPT-5 because my needs are already met. So OpenAI will lose customers at the same time as gaining them.
The price at the top end will go up, but the price at the bottom end (which is currently the top end) will fall.
I think Meta is the last major player who's only releasing free generative AI tools, so with no incentive to kneecap their best free stuff to avoid cannibalizing their own products. AI companies will have to build actual products on top of their models to produce more value, so I want to see if Meta will release whole free products to keep the pressure on. Maybe "Segment Anything" is already a step in that direction.
Hopefully until then we will have stuff that, without requiring specific hardware or hardware from specific vendors, easily runs on home computers. Best with the ability to let the models relearn from chosen sources of knowledge.
Your first concern makes no sense. You can have specific hardware that is widely available on home computers. In fact, you soon won't be able to buy a computer without them.
