Things I Don't Know About AI

published on 2024/02/22

Are cloud providers king-making a handful of players at the frontier and locking in the oligopoly market via the sheer scale of compute/capital they provide? When do cloud providers stop funding new LLM foundation companies versus continuing to fund existing? Cloud providers are easily the biggest funders of foundation models, not venture capitalists. Given they are constrained in M&A due to FTC actions, and the revenue that comes from cloud usage, it is rational for them to do so. This may lead / has led to some distortion of market dynamics. How does this impact the long term economics and market structure for LLMs? Does this mean we will see the end of new frontier LLM companies soon due to a lack of enough capital and talent for new entrants? Or do they keep funding large models hoping some will convert on their clouds to revenue?

Elad GIl