Comment by theplumber

OAI and Anthropic are forced to release a better model every x months otherwise the Chinese ones will not only be cheaper but also better.

So how could Dario show the investors very nice profit charts representing profit = revenue excluding training costs if it needs to pay a lot of training every x months?

They want to sell the same model for longer(a kind of software subscription where the cost of running /inference is cheap) but the Chinese don’t let them do it. That’s the gist of it. You can see already how they nerf the models just a week or so after release and try all kind of tricks to deliver you shitty performance for the same money. I think it’s part of the same issue of costs and enshitification plan.

In the meantime let’s hope they don’t get to ban the Chinese models(I think they won’t), local AI hardware will get cheaper and the whole AI doom saga will slowly fade to the point that Anthropic becomes a kind of IBM stuff with proprietary data, enterprise certified alignment and enterprise contacts. Think of Accenture junk.