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Daily Edition · Page 2

THE DAILY INDEX

Technology, AI, software, security, crypto and business

PROGRAMMING, DESIGN & DATA SCIENCE

TLDR

TLDR

BUILDING LLMS IS PROBABLY NOT GOING BE A BRILLIANT BUSINESS

Large language models are cool, but that doesn't mean that building them is going to be a profitable business. What makes a good business is industry structure. Airlines have unfavorable industry structure, with only two makers of airplanes, fickle and unloyal customers, and high amounts of competition. The fizzy-drinks business has a very favorable industry structure - fizzy drinks are easy to make, customers aren't very picky, and it isn't easy for new competitors to enter the market. The industry structure for large language model makers isn't very good - there is only one true supplier (Nvidia), there doesn't seem to be any brand loyalty being built up, and there is a lot of competition in the market.

calpaterson.com · 6 min

TLDR IndexPage 2