Every larger company I talk to these days has an active project on moving away from OpenAI and Anthropic to open models. And they’re actively shifting, as the article says, so the threat is far from theoretical.
Unless they both dramatically slash prices then they’re in big trouble. Neither of them can afford to do that and both desperately need to convince the street that the opposite will happen if they want any hope at a successful IPO.
However the cold reality for both is that there is zero moat to a model anymore. It’s a pure commodity. Those selling compute and access to open models are gearing up to wipe the floor with Open AI and Anthropic.
Unless they both dramatically slash prices then they’re in big trouble. Neither of them can afford to do that and both desperately need to convince the street that the opposite will happen if they want any hope at a successful IPO.
However the cold reality for both is that there is zero moat to a model anymore. It’s a pure commodity. Those selling compute and access to open models are gearing up to wipe the floor with Open AI and Anthropic.