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Comment by weatherlite | Hacker News Reader

Not worth 1B ? Come on man. I see them improving the tool enough for most people willing to pay 50$ a month for a subscription. And for most companies to be willing to pay 300$ per employee. It's perhaps not there yet but I'm sure they'll reach this amount of value for their offering. It remains to be seen what competition will do to the prices though.

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The market of people willing to pay $50 a month for OAI vs $0/month for one of the open source LLAMA variants is not large enough to justify their current valuation, imo

I'm not that familiar with the open source ones - how good are they in comparison?

It doesn't really matter how much people are willing to pay. It matters how much margin the market will allow you to charge. OpenAI may be a bit better than most competitors most of the time (IMO they keep getting leap-frogged by Anthropic et al. though), but if your customers can get 90% of the value for 50% less, they will bail. There is no moat. Margins will be razor thin. That's not a 1B+ company.

I think the difference between 90% and 95% is huge. As a coder, if the LLM is wrong 10% of the time that's pretty bad, I can't really trust it. If it's wrong 5% of the time, still not great but much better - I'd pay much more for that kind of reliability improvement.

Depends on the competition of course. They need an edge to stop me going to the bald guy and running it there.

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