Selling model access is becoming a zero-margin business
It’s gonna be like a zero margin business because there’s so much price dumping. People are giving away the model for free. It’ll still be a big business, it’ll still be a pretty high number because people need this tech — it’s growing very quickly — but the margins, at least now, are gonna be very tight.
in an interview on the 20VC podcast
A
Aidan GomezCohere · Co-founder & CEO
Where it comes from
What margins? AI’s business model is changing fast, says Cohere founderWhat the article says
OpenAI and Anthropic spend billions of dollars a year training models like GPT-4 and Claude, but competitive price dumping is making the business around these platforms rather precarious. Aidan Gomez, ...
TechCrunch