OpenAI and other LLM startups NO money

There are insane number of startups that are built on LLMs. They all call either OpenAI, Anthropic, Huggingface etc. The one problem is that although it solves real problems, it is quite replaceable. To switch from A to B, it doesn’t require more than 1 minute (just api key change) so rest of the startups built on LLM can easily switch to better performing ones. Given this, eventually either one LLM product that has the most superior quality will win all, although it will be extremely competitive to remain as the top as startups will keep on measuring the performance and switch. Either that, they will be similar and come down to price war (whoever that has the lowest cost per token) will take all, which will make it super difficult to get profits. The lowest cost offering may be less than the electricity bill + NVIDIA GPU cost that are used to go into LLM. For that reason, I believe OpenAI and all these startups will eventually either get acquired or go bankrupt (imagine balance sheet of 10B revenue and 10B cost and they will grow together with no profits) this is why OpenAI says they are nonprofit because it will never eventually be profitable 😆 It is an amazing tech but the futures are pretty defined (it will happen sooner or later) #Google, #Meta, #OpenAI #Apple #Microsoft #Netflix #NVIDIA #Amazon