Metadata
- Author: Benn Stancil
- Full Title:: Do AI Companies Work?
- Category:: 🗞️Articles
- URL:: https://benn.substack.com/p/do-ai-companies-work
- Finished date:: 2024-09-13
Highlights
Despite these costs, people will probably keep building new models. People believe that LLMs are the next technological gold rush, and the companies that build the best ones will make their employees and investors a fortune. They are trying to build artificial general intelligence. Human nature compels us to make everything faster, higher, and stronger. (View Highlight)
If the industry does keep building new models, the value of old models decays pretty quickly. Why use is GPT-3 when you can start using GPT-4 by changing a dropdown in ChatGPT? If a competitor puts out a better model than yours, people can switch to theirs by updating a few lines of code. To consistenly sell an LLM, you have consistently be one of the best LLMs. (View Highlight)
Therefore, if you are OpenAI, Anthropic, or another AI vendor, you have two choices. Your first is to spend enormous amounts of money to stay ahead of the market. This seems very risky though: The costs of building those models will likely keep going up; your smartest employees might leave; you probably don’t want to stake your business on always being the first company to find the next breakthrough. Technological expertise is rarely an enduring moat. (View Highlight)
Your second choice is…I don’t know? Try really really hard at the first choice?2 (View Highlight)