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I think Anthropic and OpenAI have found product-market fit (simonwillison.net)

1094 points by simonw · 47 days ago · 1245 comments on HN

Article summary

Anthropic and OpenAI are rumored to have found product-market fit with their coding and general-purpose agent products, leading to increased revenue from enterprise customers. The companies have recently changed their pricing models to charge enterprise customers API prices, which has led to some companies being surprised by the high costs. The author believes that the real money lies in cutting out the middlemen and selling directly to enterprises. This shift is expected to have a significant impact on the budgets of large companies.

Main themes

  • AI product-market fit
  • Enterprise pricing models
  • Coding agents
  • AI revenue streams
  • Competition in AI market

What commenters say

  • The increased use of AI in software development will lead to significant productivity gains, but may also automate some jobs away.
  • The high cost of AI tokens may be a barrier to adoption for some companies, but others see the benefits as worth the expense.
  • Open-source AI models are becoming increasingly competitive with proprietary models, potentially disrupting the market.
  • The shift to API pricing for enterprise customers may lead to a more sustainable business model for AI companies, but some commenters are skeptical about the long-term viability of this approach.
  • Some companies are hesitant to rely on Chinese AI providers due to concerns about data security and compliance, while others see open-weight models as a viable alternative.
  • The use of AI in other fields beyond software development, such as research and law, may be more challenging due to the difficulty of spotting errors and hallucinations.
  • The valuations of AI companies like Anthropic and OpenAI are seen as overly high by some commenters, who predict a correction in the market.
  • The increasing competition in the AI market, including from Chinese providers, may drive down prices and improve services, but also raises concerns about supply-chain attacks and data security.