Hacker News Reader

Comment by rvz | Hacker News Reader

Well this is very bad for the private AI companies but Big Tech will be fine, especially Meta and Apple.

Everyone else who over-leveraged into the private AI companies (Anthropic, OpenAI) are going to have their valuations under scrutiny.

View on HN

What does Apple have to do with AI

MSFT should be here instead of apple

Nothing. Apple (and Meta) are not directly impacted by AI even if the cost of training these AI models becomes cheaper and $0 free models get better.

It actually affects the frontier AI companies (OpenAI, Anthropic, etc) who directly make money from their closed models AND spend hundreds of millions on training these models.

Why pay $3/per million tokens (Claude 3.5 Sonnet) when DeepSeek R1 offers $0.14 / per million tokens and the model is on par with (OpenAI o1) and R1 itself is released for free?

$0 free AI models are eating closed AI models lunch.

Yes. The shovels (Nvidia) should be happy with this. The competition gold diggers should be scared of the alchemists. This analogy ain't working.

But yeah agree with you!

> Meta) are not directly impacted by AI even if the cost of training these AI models becomes cheaper and $0 free models get better.

cheaper spam and impersonation engines (LLMs) have a direct impact on the ad network that is strategically downsizing its moderation efforts

Nothing, and I think that was the point GP was making. Since not much of Apple's valuation is tied to AI hype they won't suffer (at least not close to as much) from the bubble bursting.

Big Tech is full of grifter CEOs.

Reply on news.ycombinator.com