Gomez suggests that the application layer, such as OpenAI's ChatGPT subscription, could be a potential revenue source. He also warns against AI startups becoming subsidiaries of their cloud providers, as it could limit their potential for growth and competition. Despite the current challenges, there is hope that future innovations in model architecture, data efficiencies, or computing power could eventually generate significant returns for these AI models.
Key takeaways:
- AI companies like OpenAI and Anthropic are spending billions on training models, but competitive price dumping is making the business precarious.
- Aidan Gomez, CEO of Cohere, suggests that selling access to AI models is becoming a zero margin business due to the high costs and low returns.
- Big tech companies are acquiring AI startups, leaving behind unprofitable business models while preserving their powerful technology.
- There is speculation that future innovations in AI model architecture, data efficiencies or computing power could generate huge returns, but it's uncertain when or if this will happen.