> My prediction is that OpenAI and Anthropic will eventually be crushed by Alphabet as they run out of investment and compute, leaving Alphabet to have a monopoly on AI, at least in the west.
It's the other way around (but the result would be the same): Alphabet has no need to make a 100x exit for the investors, and so can offer the service at cost + %markup, while Anthropic and OpenAI are VC funded, meaning that they need to show 10x - 100x exit for the investors.
IOW, there is no moat, Alphabet would have market-related pricing while VC-backed corps cannot offer market-related pricing.
>It's the other way around (but the result would be the same): Alphabet has no need to make a 100x exit for the investors, and so can offer the service at cost + %markup, while Anthropic and OpenAI are VC funded, meaning that they need to show 10x - 100x exit for the investors.
If this was true, Alphabet wouldn't currently be charging more for a worse product than OpenAI and Anthropic.
It's the other way around (but the result would be the same): Alphabet has no need to make a 100x exit for the investors, and so can offer the service at cost + %markup, while Anthropic and OpenAI are VC funded, meaning that they need to show 10x - 100x exit for the investors.
IOW, there is no moat, Alphabet would have market-related pricing while VC-backed corps cannot offer market-related pricing.