Silly question: how can OpenAI, Claude and all, have a valuation so large considering all the open source models? Not saying they will disappear or be tiny (closed models), but why so so so valuable?
replies(10):
That name alone holds the most mindshare in it's product category, and is close to the level of name recognition just like Google.
In reality OpenAI is loosing money per user.
Cost per token is tanking like crazy due to competition.
They guesstimate break even and then profit in couple of years.
Their guesses seem to not account for progress much especially on open weight models.
Frankly I have no idea what they're thinking there – they can barely keep up with investor subsidized, non sustainable model.