Toot

Written by Jens Bannmann on 2024-12-01 at 09:20

Much has been written about the #hype surrounding #LargeLanguageModels (so-called "AI") and their effect on the IT industry - both on its products and on its consumers.

But this post by @calpaterson explores a related aspect that I haven't seen discussed so far: will making LLMs be a profitable business in the long run?

"A lot of people think that (LLMs) are going to be The Future. Maybe they are — but that doesn't mean that building them is going to be a profitable business."

https://calpaterson.com/porter.html

Cal elegantly explains how the structure of the industry you're in (suppliers, buyers, competitors etc) influences your chances of success. Then, he goes on to analyze the situation for #OpenAI and others.

Definitely recommended reading! No MBA required.

[#]LLM #ChatGPT #Anthropic #Gemini #Nvidia

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