Five major American companies compete on frontier models, fostering innovation and benefiting the AI landscape. This competitive environment helps prevent monopolistic outcomes, ensuring no single entity holds all power. Open source technology is significant, offering 80-90% of capabilities at much lower costs, appealing to those needing customization. A division of labor is emerging between generalized models and specific applications targeting niche problems. Human oversight will remain essential as AI models require extensive prompting and verification to achieve useful results.
We have 5 major American companies vigorously competing on frontier models. This brings out the best in everyone and helps America win the AI race.
So far, we have avoided a monopolistic outcome that vests all power and control in a single entity.
There is likely to be a major role for open source. These models excel at providing 80-90% of the capability at 10-20% of the cost. This tradeoff will be highly attractive to customers who value customization, control, and cost over frontier capabilities.
There is also an increasingly clear division of labor between humans and AI. Despite all the wondrous progress, AI models are still at zero in terms of setting their own objective function.
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