I’ve been saying this for a while: what is the actual economic case for frontier models? Will most users notice the difference between it and a Chinese model that’s maybe 90% as good but costs 10x less? SV has been so used to low cost and high margins, they genuinely don’t have an answer to this.

Albert Pinto

Anatomy of the AI crisis 1 OpenAI and Anthropic have hundreds of billions in payments coming due this year to BigTech AI companies Meta, Microsoft, Nvidia etc 2 They need revenue, so jack up rates. 3 Users shift to cheap open-source Chinese models 4 ??? We are at stage 4 x.com/Hedgeye/stat...