Comment by HDThoreaun
1 day ago
Only if training new models leads to better models. If the newly trained models are just a bit cheaper but not better most users wont switch. Then the entrenched labs can stop training so much and focus on profitable inference
If they really have 40-60% gross margins, as training costs go down, the newly trained models could offer the same product at half the price.
Well thats why the labs are building these app level products like claude code/codex to lock their users in. Most of the money here is in business subscriptions I think, how much savings would be required for businesses to switch to products that arent better, just cheaper?
I think the real lock-in is in "CLAUDE.md" and similar rulesets, which are heavily AI specific.
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