A one-trillion-dollar valuation is no joke. Anthropic and OpenAI are both at this level, and they are both preparing for IPOs.
Of course, expectations are high. Many people will bet insane amounts of money on these two companies. But are they even in a good position to win the AI race?
I try to find the answers in the video above. Here’s a brief description of what’s in it.
Both Anthropic and OpenAI started as chatbots, then quickly pivoted to coding. LLMs are extremely performant pattern matching machines, so coding, which is a general language domain with very small vocabulary and easy grammar, was a low-hanging fruit. Both companies are relying extensively on this and the majority of their users range from vibe coders to enterprises looking to cut their costs.
But there’s life outside the tech / digital vertical. Too many people get stuck in their own opinions and end up in echo chambers. While outside these echo chambers, established companies like Google, Meta or SpaceXAI are already finding use cases outside coding. Google is embedding AI snippets in search results. Meta uses the Ask Meta megabot to increase engaging, and SpaceXAI is tweaking its algorithm using Grok, while at the same time uses Grok as an affordable conversation partner. All these 3 companies are quiet, but there’s a fundamental difference between them and the 2 main contenders.
And that difference is users. They already have billions of users, acquired through years of marketing. Whereas Anthropic and OpenAI are either resorting to fear mongering marketing, or spend insane amounts of cash on user acquisition.
So, while being way more quiet, the 3 established companies have actually a better chance at winning the AI race. And that boils down to 3 parameters: users (already talked about that, but worth mentioning another key detail), compute and data.
So, not only they have users, but they have paying users and they know their spending habits. Converting those users to AI-powered services will be a no-brainer.
They also have compute. Some of them, like Google and Meta are even building their own chips, while SpaceXAI built 2 mega data centers, Colossus 1 and Colossus 2, which are already renting compute to Anthropic.
And of course, they have a lot of data, gathered during years of operation. They can train way better models and at more competitive prices.
Among these 3 established companies, SpaceXAI deserves a special mention. Google and Meta are essentially digital companies, but SpaceXAI can also distribute AI in electric cars, in Optimus robots, and, soon, via Neuralink brain-to-computer interfaces.
If you like the video, like and share, and if you have any other topics you want to me touch on, just live a comment on YouTube, I read them all.
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