the question was: what is the endgame for the stated "second class labs" strategy of distilling their frontier competitors then undercutting them on price?
Yes yes, we all understand the game-theoretic race-to-the-bottom you're describing here. Somehow despite linux being FOSS it still powers most of the important computing in the world. Can you explain how that works despite it being free? Once you understand that case I think you'll understand the game-theory behind how large projects can exist in the absence of traditional IP protection.
the obvious difference is the massive scale of data and compute required to develop and evolve these models, and the costs they impose on those building them.
the question was: what is the endgame for the stated "second class labs" strategy of distilling their frontier competitors then undercutting them on price?
They will make a bunch of money then maybe go out of business eventually when the economics shift? Do they need an endgame?
Some people are just happy to follow the money.
Yes yes, we all understand the game-theoretic race-to-the-bottom you're describing here. Somehow despite linux being FOSS it still powers most of the important computing in the world. Can you explain how that works despite it being free? Once you understand that case I think you'll understand the game-theory behind how large projects can exist in the absence of traditional IP protection.
the obvious difference is the massive scale of data and compute required to develop and evolve these models, and the costs they impose on those building them.
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Making lots of money?