Nikesh Arora on X: "The AI Business model trap: LLMs want cash flow to fund the race to AGI or the next model. Enter free consumer AI - they are losing a lot of money on the breadth of models to serve consumers for free! They are caught in the post training data trap, free consumer usage feeds post" / X

The AI Business model trap: LLMs want cash flow to fund the race to AGI or the next model. Enter free consumer AI - they are losing a lot of money on the breadth of models to serve consumers for free! They are caught in the post training data trap, free consumer usage feeds post

Nikesh Arora @nikesharora The AI Business model trap: LLMs want cash flow to fund the race to AGI or the next model. Enter free consumer AI - they are losing a lot of money on the breadth of models to serve consumers for free! They are caught in the post training data trap, free consumer usage feeds post training needs, it can't be right to stop serving customers for free? But they need money for the compute: The monetization challenge is being pointed to Enterprises. Phase 1 - seemed easy, value capture in coding, the most bottom up motion in enterprise - with low customization per customer.

related reading

• Small Models Have Arrivedcalv.info
• Stratechery by Ben Thompson – On the business, strategy, and impact of technology.stratechery.com
• Training Imperativesdan.io
• Things I Don't Know About AI - by Elad Gil - Elad Blogblog.eladgil.com
• AI Is Really Weirdwheresyoured.at
• openai burns the boatsethanding.substack.com
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• AI Is Slowing Downwheresyoured.at
• Why Are We Still Doing This?wheresyoured.at
• Aakash Thumaty (@letsleverup) on Xx.com
• Things we learned about LLMs in 2024simonwillison.net
• Up the Stack: How AI’s Escape From the Commodity Trap Risks Enterprise Lock-innormaltech.ai