Do AI Companies Work?

The article 'Do AI companies work?' explores the financial and technological challenges faced by AI companies, particularly those building large language models (LLMs). It discusses the high costs of development, the uncertain market, and the intense competition, which can render even leading models obsolete in a short time. The potential for disruption is high, as access to computing resources is available to any well-funded team, undermining the idea of a secure competitive edge.

• OpenAI is in the process of raising $6.5 billion
• AI model costs are unlikely to decrease with time
• The value of old models decays quickly
• Every LLM vendor is potentially 18 months from obsolescence
• LLM vendors face high costs as necessary ongoing expenses