> The pricing is too good to be true with you think about it rationally
In what way shape or form?
> If they raise prices they seem much, much less attractive than using AWS or Azure.
They're already significantly more expensive than Azure. OpenAI charges something like $30k a month for dedicated capacity on a "call our sales team" basis: GPT 3.5/ GPT-4 on Azure comes with that for free.
And GPT-4 is already slow and expensive enough that no one just chooses it arbitrarily... they're using it for things no other model can do. They could charge double for GPT-4 and GPT-4 would still be the only model that can do those tasks: you wouldn't get to just switch off to some other GPT-4 equivalent provider.
> Amazon seem to have a much better business built around their Bedrock offering
Amazon is literally doing the same thing with Bedrock! They're offering Anthropic at competitive prices to OpenAI for a model that's no cheaper to run based on their own dedicated capacity numbers.
> OpenAI offering just models doesn't seem like it can last forever, and to compete with AWS or Azure at enterprise level they need to build all the things Amazon/MS have built.
OpenAI is not trying to become Azure: They actively go out of their way to hide the fact they even offer half the things they offer to enterprises, instead relying on Azure absorbing demand as much as possible.
OpenAI wants ChatGPT Plus to be the new Prime, as in no one should be able to afford to not pay OpenAI for their immensely valuable offering.
Except unlike Prime, the offering is software, not commerce: If Amazon could get AWS-like margins from their e-commerce business, AWS would be a footnote.
In what way shape or form?
> If they raise prices they seem much, much less attractive than using AWS or Azure.
They're already significantly more expensive than Azure. OpenAI charges something like $30k a month for dedicated capacity on a "call our sales team" basis: GPT 3.5/ GPT-4 on Azure comes with that for free.
And GPT-4 is already slow and expensive enough that no one just chooses it arbitrarily... they're using it for things no other model can do. They could charge double for GPT-4 and GPT-4 would still be the only model that can do those tasks: you wouldn't get to just switch off to some other GPT-4 equivalent provider.
> Amazon seem to have a much better business built around their Bedrock offering
Amazon is literally doing the same thing with Bedrock! They're offering Anthropic at competitive prices to OpenAI for a model that's no cheaper to run based on their own dedicated capacity numbers.
> OpenAI offering just models doesn't seem like it can last forever, and to compete with AWS or Azure at enterprise level they need to build all the things Amazon/MS have built.
OpenAI is not trying to become Azure: They actively go out of their way to hide the fact they even offer half the things they offer to enterprises, instead relying on Azure absorbing demand as much as possible.
OpenAI wants ChatGPT Plus to be the new Prime, as in no one should be able to afford to not pay OpenAI for their immensely valuable offering.
Except unlike Prime, the offering is software, not commerce: If Amazon could get AWS-like margins from their e-commerce business, AWS would be a footnote.