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> Until the competition outcompetes you with their new model and you have to train a new superior one, because you have no moat. Which happens what, around every month or two?

Eventually one of you runs out of money, but your customers keep getting better models until then; and if the loser in this race releases the weights on a suitable gratis license then your businesses can both lose.

But that still leaves your customers with access to a model that's much cheaper to run than it was to create.

The point is not that every lab will be profitable. There only needs to be one model in the end to increase our productivity massively, which is the point I'm making.

Huge margins lead to a lot of competition trying to catch up, which is what makes market economies so successful.

Gemini models are trained and run on Google's in house TPU's, which frankly are incredible compared to H100's. In fact Claude was trained on TPUs.

Google however does not sell these, you can only lease time on them via GCP.