Reported about 5 hours ago
The AI industry is witnessing a significant shift as startups focus on customizing AI models for specific tasks, viewing foundation models as interchangeable commodities rather than unique advantages. With the diminishing returns on scaling pre-training and the rise of post-training methods, the competitive advantage once held by major companies like OpenAI and Anthropic is being undermined. As AI applications diversify and open-source alternatives proliferate, these foundation model companies may increasingly find themselves in a low-margin position, likened to 'selling coffee beans to Starbucks.'
Source: YAHOO