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this post was submitted on 21 Jul 2025
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Ah I see what you mean, yeah basically every AI company that is not developing an actual model is 100% fucked in the long wrong, because their entire business model is essentially "we make a prompt around ChatGPT API calls" which is not sustainable as soon as pricing for APIs starts going way up. I also think that the larger players banking on AI as a service business model is not going to work out for the reasons you mentioned (Deepseek R1 alone, which I can run on like a normal laptop, is already fantastic) BUT even if none of that doesn't work out Google/Facebook/Microsoft/Apple et al. are going to be fine, because their revenue is not actually from AI at all. There's no bubble to pop there.
I agree, the big corps are gonna be fine in the end. They'll probably also gobble up any startups that end up producing genuinely useful stuff.