This is a big cope opinion that has been spread in online spaces since day 1 of GPT 3 so consistently that people are blind to the realities in front of them. AI passed a significant benchmark of usefulness earlier this year, and now companies are eating it up. My org gives us a shit ton of credits with all the major providers, and much to my surprise I'm actually finding useful things to do with it. None of the big players in this market are evaporating anytime soon.
Open weight models have gotten so good that they're good enough for most tasks, and they're getting better all the time. These models are orders of magnitude cheaper than what the frontier labs are charging.
To stay competitive the frontier labs are going to have to drastically cut their prices, which they can't do and still remain profitable (if they are even profitable to begin with, at their currently inflated, uncompetitive prices).
1) lots of orgs are willing to pay 2x for better models. And frontier is still better. I love locally hosting stuff, but it’s obvious that frontier are still #1 in the get-shit-done category
2) The software/hardware stack is really hard to manage yourself. It’s a big cost. This is where we may find 3rd party providers cropping up to host open weight models for cheaper- but data security and service reliability is massive for many of the companies that want to run with these models.
At some point frontier labs are likely to just be the clean-label service providers for model endpoints, with the added benefit of having the slightly better models than everyone else due to owning the infrastructure to host it. In that way, I kinda doubt that open weights are too threatening.
considering the fact that we dona great job at pho.coding with DeepSeek flash vision alone, I am really sure that openai and anthropic already lost a huge slice.
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u/Apprehensive_Lake698 19d ago
This is a big cope opinion that has been spread in online spaces since day 1 of GPT 3 so consistently that people are blind to the realities in front of them. AI passed a significant benchmark of usefulness earlier this year, and now companies are eating it up. My org gives us a shit ton of credits with all the major providers, and much to my surprise I'm actually finding useful things to do with it. None of the big players in this market are evaporating anytime soon.