This is what concerns me about how AI giants are planning to make money. Their product has already been commoditized at prices which for them are still subsidized to grab market share. Unless the giants invent a technological leap, their prices are going to be dragged down by open weight models and I don't see how they'll turn a profit.
It would not be surprising if GPT and Claude get cheaper too as inference gets cheaper. Two years ago, o1 was the strongest model and cost much more than Fable, while being nowhere near as smart as a Qwen 3.6 35B that you can now run on a DGX Spark without much trouble.
True, outside of the dark tactics I imagined in the article, they will have to compete at lower costs. It's just that the current iteration does not feel cost competitive yet.
This is what concerns me about how AI giants are planning to make money. Their product has already been commoditized at prices which for them are still subsidized to grab market share. Unless the giants invent a technological leap, their prices are going to be dragged down by open weight models and I don't see how they'll turn a profit.
It would not be surprising if GPT and Claude get cheaper too as inference gets cheaper. Two years ago, o1 was the strongest model and cost much more than Fable, while being nowhere near as smart as a Qwen 3.6 35B that you can now run on a DGX Spark without much trouble.
True, outside of the dark tactics I imagined in the article, they will have to compete at lower costs. It's just that the current iteration does not feel cost competitive yet.