Yeah, the problem with selling shovels where shovels=APIs is that APIs cost almost nothing to replicate and are not copyrightable. Tools like Ollama and LiteLLM already offer APIs that are drop-in replacements for OpenAI.
OpenAI isn't losing yet because their models are still marginally better and they have a lot of inertia, but their API isn't going to save them.
> But their apparent strategy is to bet it all on finding another breakthrough similar to the switch from text completion to a chat interface
I'm still convinced that their strategy is to find an exit ASAP and let Altman cash out. He's playing up AGI because it's the only possible way that "AI" becomes a product in its own right so investors need to hear that that's the goal, but I think he knows full well it's not in reach and he can only keep the con going so long. An exit is the most profitable way out for him.
OpenAI isn't losing yet because their models are still marginally better and they have a lot of inertia, but their API isn't going to save them.
> But their apparent strategy is to bet it all on finding another breakthrough similar to the switch from text completion to a chat interface
I'm still convinced that their strategy is to find an exit ASAP and let Altman cash out. He's playing up AGI because it's the only possible way that "AI" becomes a product in its own right so investors need to hear that that's the goal, but I think he knows full well it's not in reach and he can only keep the con going so long. An exit is the most profitable way out for him.