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Comment by hobofan

2 days ago

A large portion of those customers buy those models from their preexisting cloud vendors: AWS, Azure, GCP.

The customers are also price sensitive and are for many use-cases largely fine with last-generation model performance if that means they are cheaper. With that, there is little moat for the model creators, forcing a race to the bottom for model licensing, and the biggest chunk of the profit being captured by the cloud providers.