Probably bad news for the vendors, though. I genuinely struggle to see how most of these LLM companies are going to monetize and profit off their efforts with LLMs already in commodity territory. Government contracts can only flow for so long?
I wouldn't bet on that, given the undemocratic influence Grok's owner has in government.
That being said it's my understanding that these companies don't have many huge contracts at all -- you can audit this in like 10 minutes on FPDS. Companies need a LOT of capital, time, and expertise to break into the industry and just compliance audit timelines are 1-4 years right now, so this could definitely change in the next couple years.
That's what I mean. One example are PV panels, they are making energy production cheaper, so their producers should be good investment right? No they go bust all the time because prices are falling and margins are thin even if the volume grows. Of course the economies of scale here are different but still.