Comment by adventured
4 hours ago
Luna is about suppressing inexpensive Chinese model competition.
It's super simple.
Gigantic hyper margin ad network = artificial subsidization of cost for various tiers = put the boot on the neck of Chinese competitors. There's no scenario where they can compete with what advertising margins make possible in terms of artificially lowering prices charged.
> Luna is about suppressing inexpensive Chinese model competition.
I think so too. To me the so-called Chinese local models are a clear move to prevent US companies to establish a foothold and build a moat around their business. US companies are clearly invested in a strategy to make themselves relevant with claims of major impressive achievements with the so called frontier models, and how these and only these are unblocking whole ranges of applications. At the same time, they are heavily invested in pushing AI on all absurd types of mundane tasks, such as transcribing meetings and... talking to your own kids?
In the meantime it's rather obvious that, in spite of all the propaganda, frontier models are required only in ultra niche applications, whereas the ability to run any model at all already provides most of the value. In fact, US companies have been renownee by dumbing down older generation models in what seems to be a desperate attempt to make newer models look better and influence their uptake rate.
So there is no better way to take the wind out of the US AI companies' sail than pulling a two-punch attack consisting of not inly releasing capable models that refute the "only US frontier will do the job" thesis but also releasing them for free to commodities them and eliminate the business impact of dumbing down models.