15/05/2024
A few thoughts from OpenAI and Google I/O events:
1. GPT-4o is given free means selling AI APIs isn't viable because there will be eventually open-source models that do similarly well. The only ones that benefit are cloud vendors like AWS, Azure or GCP. Proprietary AI vendors still have a market but the margin will be squeezed to minimum due to fierce competition.
2. For B2C, giving free apps is more sustainable because again eventually there will be alternative apps that are cheaper.
3. The more fertile land for AI is in specialized B2B domains where open-source community isn't as crowded and switching models faces a lot more friction.