Interesting data and insights from alternative data sources. Companies are starting to move past the »test« phase of AI workloads. Open-source AI models are gaining traction. The future is constrained by the power grid and energy. Synthetic data is the future. Instagram Reels are performing well. Continued ramp-up in WhatsApp growth. Big tech is getting ready for the AI fight with custom silicon
Richard, are you at all concerned that as the open source models get more capable it may siphon some demand from openAI and hence azure? The alt data is already showing some increase in claude 3 usage at the expense of openAI
Yes, I often shared the opinion that the base foundation models will become commoditized down the road. The biggest value creation will be in fine tunning of an foundation model with proprietary data + having distribution. When it comes to cloud providers like Azure I think they don't care if the future is closed end models or open-source as with both you need to host the model (mostly in cloud) and pay for infrastructure.
Richard, are you at all concerned that as the open source models get more capable it may siphon some demand from openAI and hence azure? The alt data is already showing some increase in claude 3 usage at the expense of openAI
Yes, I often shared the opinion that the base foundation models will become commoditized down the road. The biggest value creation will be in fine tunning of an foundation model with proprietary data + having distribution. When it comes to cloud providers like Azure I think they don't care if the future is closed end models or open-source as with both you need to host the model (mostly in cloud) and pay for infrastructure.