[echelon]

Fal wants to sell compute, and since they're straggling behind the compute-as-an-API leaders they've attached their cart to the art, image, and video subset of the market.

They think they've got a leg up on their model partners. That the foundation model companies will mostly become generic copies of one another, servants of the compute layer. There are so many foundation video models now, and they'll battle it out over dwindling margins. Pika, Runway, Kling - they're all the same. And there's also growing open source foundation models.

The thing that stands in Fal's way is that the future of AI video for artists is local. Hunyuan and Comfy can run on desktop machines, and real artists hate the SaaS model and non local stuff. It doesn't look like we'll even need A100s to reach Pixar levels of quality.

The ones to watch in the art space are Comfy and Invoke. And Adobe.

Fal probably has a future in powering the API-driven YouTube Shorts slop, though there's probably an upper limit to the number of talking head startups.

But there's no way they win artists over to cloud. Sophisticated tools are going to be local. Any SaaS art tools that do achieve escape velocity will buy and manage their own compute and won't go through Fal as a reseller.

[varispeed]

Call me thick, but it's like back in the day, rich bored person goes to an artist and says "paint me this and that". Except now the "rich" person calls themselves an artist and "actual" artist is replaced by AI contraption that basically regurgitates real artist works. It's kind of comical.

But also makes sense. If you wanted e.g. music, you could either look at catalogue of what's out there or try to make your own. But if no one is making what tickles you and you yourself have no talent to make what you would like to listen, the AI comes to rescue.

[dutchbookmaker]

This is all nonsense.

People don't want to watch two chess computers play even if they can both smoke Magnus Carlsen.

Art is an even more extreme version of this. Part of what makes a Dali painting a Dali painting is the mimetic desire of the general weirdness of the human Salvador Dalí.

AI can't displace human mimetic desire. AI art is just worthless muzak playing in the background at Dennys. Non-artistic/non-creative people right now are amazed at how they can make muzak but muzak is shit by its very nature.

[varispeed]

I think you are correct too. In my opinion both takes are correct.