OpenAI is an existential threat to Google. They're both solving the same problem for consumers. Something like "there's information on the Internet that I want but don't know where it is". Almost all of Google's value derives from being the default solution to that problem. They can't give up that space to OpenAI. And, at least IMHO, it's obvious LLMs are the future in this area.

The other side to that coin is monetization. Google is dominant there as well. OpenAI can't yield that space to Google because it's how the value is extracted from the consumer.

Came to post something with a similar sentiment. It's going to have broad market effects when the circle dealing doesn't work out as intended. OpenAI is losing so much money every quarter that they will undoubtedly have to raise prices I would think and people may not be willing to pay them.

The negative drumbeat has started, and the narrative is changing to become critical. Every new fad reaches a saturation point, and people's attention spans are short. Already, I see folks piling onto the quantum bandwagon as if LLMs are passe.

Here, the clouds have pulled a trick to inflate their revenues with their own cashflows, and have not been punished yet for it by shareholders - except meta which is getting asked some difficult questions.

> At this point these announcements are more PR posturing than anything that makes financial sense for shareholders.

corporate would like you to find the difference between these two photos

Big companies are made out of people, and those people are just as fallible as everyone else… and more so, in fact. They’re prone to group-think and suppressing bad news.

The existence proof is, well, every financial crisis ever. Start with the housing bubble and ask, why did huge banks whose entire job was financial modeling get caught up in it? What makes companies today immune to those same types of decision-making errors?

It is not a panic if you are the first out…

Tbh these juggernauts could survive an AI bubble bursting and pick up the pieces, they are playing with a little bit more than their spare change here.