"It's amazing how quickly AI model improvements get commoditized," said Rahul Sonwalkar, CEO of startup Julius AI. "Companies spend massive amounts building these new models, and within a few months they become a commodity."
The price of accessing AI models has indeed plunged in the past year or so. That, in turn, could raise questions about whether it's worth spending hundreds of millions of dollars, or even billions, to build the next top AI model.
OpenAI previewed its o1 model, back in September, the product was hailed as a breakthrough. It uses a new approach called inference-time compute to answer more challenging questions.
The proliferation of multiple AI models with similar capabilities could make it difficult to justify charging high prices to use these tools.
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