Value lives in applications like ChatGPT, not in models themselves
The main value creation from OpenAI models comes from three areas: ChatGPT itself, the various Co-Pilots, and the OpenAI API integration with Microsoft. The important part is integrating the algorithm into the product, not the algorithm alone. For ChatGPT specifically, rumors suggest that running costs surpass its revenues. So while the models themselves don’t create a moat, the application of those models in consumer-facing products is where actual value emerges. The integration and use case drive value, not just having trained an LLM.
— OpenAI Isn’t Going Bankrupt, But It Has A Business Model Problem · Forbes