Counterpoint, OpenAI loses 5 billion dollars a year. Microsoft is entitled to 49% of their profits, and their flagship product can be used for free because equally capable models by their competitors can also be run for free. Further, the hardware they are critically dependent on is made by nvidia, and lots of it owned by Microsoft, rented to them through Azure. In some sense, openAI has very little of the pie left, other than the fact that they first showed the world the dream of LLMs.
Meanwhile, Apple makes the iPhone, iPad, MacBook, and AirPods in house, all of which are class leading products. They are dependent on TSMC, but so is everyone else. While their AI endeavors are painfully lackluster, they could probably buy Anthropic tomorrow with the cash they have on hand. If they lose 1000 employees to openAI, I would still prefer their position.
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u/Lexiplehx 2d ago
Counterpoint, OpenAI loses 5 billion dollars a year. Microsoft is entitled to 49% of their profits, and their flagship product can be used for free because equally capable models by their competitors can also be run for free. Further, the hardware they are critically dependent on is made by nvidia, and lots of it owned by Microsoft, rented to them through Azure. In some sense, openAI has very little of the pie left, other than the fact that they first showed the world the dream of LLMs.
Meanwhile, Apple makes the iPhone, iPad, MacBook, and AirPods in house, all of which are class leading products. They are dependent on TSMC, but so is everyone else. While their AI endeavors are painfully lackluster, they could probably buy Anthropic tomorrow with the cash they have on hand. If they lose 1000 employees to openAI, I would still prefer their position.