Absolutely hilarious how US companies bet the farm on subscription based AI products, and now the whole business model is falling apart. This might be the first time that Silicon Valley is facing direct competition with some new tech it’s developing. And the interesting part here is that they’re facing a different business model, Chinese companies aren’t looking for direct monetization. They’re treating models as shared infrastructure, sort of what we already see happening with Linux. Most companies don’t try to monetize it directly, they build stuff like AWS on top of it and that becomes the product. I expect American companies are just going to run out of runway in the near future because they’re getting squeezed by open Chinese models which undercut their entire business model.
Absolutely hilarious how US companies bet the farm on subscription based AI products, and now the whole business model is falling apart. This might be the first time that Silicon Valley is facing direct competition with some new tech it’s developing. And the interesting part here is that they’re facing a different business model, Chinese companies aren’t looking for direct monetization. They’re treating models as shared infrastructure, sort of what we already see happening with Linux. Most companies don’t try to monetize it directly, they build stuff like AWS on top of it and that becomes the product. I expect American companies are just going to run out of runway in the near future because they’re getting squeezed by open Chinese models which undercut their entire business model.