[ChaitanyaSai]

The thing I do not understand here because it seems obvious: AI will be a commodity market and you simply cannot have a large PE multiple. So the valuations imagine a global commodity monopoly or duopoly coupled with the increased intelligence still disallowing other suppliers from becoming competitive? Without any network effects to help?

[horacemorace]

Perhaps to moneymen the difference between “ChatGPT” and the technology behind it isnt’t obvious. I’ve been very surprised at how few otherwise smart people are completely in the dark about how capable current models are.

As soon as manufacturing starts building this stuff more, it will commoditize. The hardware prices won’t be terribly larger than the original. We’ll have a “Bambu labs” style company to make the AI OS, whatever that is.

[jppope]

There are many ways to create "sticky" products, even commodity products (e.g. coca cola, starbucks, etc). Network effects are just one.

Regarding Price to Earnings... I'm not sure everyone fully fleshed out the end game for the frontier companies. It appears the pitch is that this current phase is a stepping stone to Artificial General Intelligence or Super Intelligence. I can understand the perspective of investors though... If you can get half of the world on these products at some point you will find something you can sell them even if its not the core product (i.e. loss leader).

[bg24]

AI (llm) will be a commodity market => I am not sure it was obvious. As of last month, folks thought open weight models are lagging by 6+ months. Once K3 is taken for a deep run across many use cases, it will be clear where it stands. But yes, I agree that now that intelligence is commodity, everything changes.