The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
For some reason, I find this satisfying and funny. The landscape has been changing. The open-weight models from Chinese labs are getting really good and becoming a serious threat to the closed models from American AI companies.
Interestingly, Google, Meta, and Microsoft — who all have revenue streams outside of AI — recognize the threat are getting more supportive about open-weight models. Anthropic and OpenAI support keeping models closed for “safety” reasons.
For some reason, I find this satisfying and funny. The landscape has been changing. The open-weight models from Chinese labs are getting really good and becoming a serious threat to the closed models from American AI companies.
Interestingly, Google, Meta, and Microsoft — who all have revenue streams outside of AI — recognize the threat are getting more supportive about open-weight models. Anthropic and OpenAI support keeping models closed for “safety” reasons.