Losing the AI race

Based on this article by Russell Brandom on TechCrunch.

The competitive advantage of building massive foundation models is diminishing, as they are increasingly viewed as interchangeable commodities by startups building applications on top of them. This shift is driven by the slowing returns from pre-training, pushing the industry's focus toward customization and interface design for specific tasks.

Consequently, the AI landscape is evolving from a race for a single dominant model to a competition across many distinct business applications like coding and data management. Without a durable technological moat, this trend threatens to relegate the major AI labs to being low-margin backend suppliers rather than the dominant platforms they were once expected to become.

Check out the article.

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