The problem AI has, especial frontier models, is that they cost BILLIONS to develop, so they need SHIT LOADS of paying customers to be profitable.
However, unlike let’s say physical invention, you almost get no advantage of your development since China can just clone your model with very little cost and then offer it at a fraction of the cost.
It’s honestly a very effective way to undermine American companies, with hardly any money investment.
Let US companies burn cash, then copy and undermine the customer base.
It’s one of the reasons people fear the AI bubble, all this money invested isn’t coming back
This is huge though.
The problem AI has, especial frontier models, is that they cost BILLIONS to develop, so they need SHIT LOADS of paying customers to be profitable.
However, unlike let’s say physical invention, you almost get no advantage of your development since China can just clone your model with very little cost and then offer it at a fraction of the cost.
It’s honestly a very effective way to undermine American companies, with hardly any money investment.
Let US companies burn cash, then copy and undermine the customer base.
It’s one of the reasons people fear the AI bubble, all this money invested isn’t coming back
https://isaiprofitable.com/