Perfect Competition in AI - The Race to Zero Profits
We explain the concept of "perfect competition" leading to zero profits by looking at analogies with a hotshot chef capturing all restaurant profits. The same "race to the bottom" could occur in AI with: Closed models cornering the market Open models becoming commoditized like Linux Companies paying for all AI API costs Core technology becoming abundantly available Understanding these economic incentives allows strategizing around long-term viability with AI systems. Pursuing temporary advantages often gives way to market pressures. Is there space for specialization as the field matures?
Show Notes
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