11 chunks · 10 episodes
If your tool can solve disease you don't monetize via the API but via vertical integration. The API takes a small cut of everything. Vertical integration takes a massive cut of a few things. If there is a very long tail of use cases, the ho...
...d encourage you to think of it as a friend. 3) The biggest Chatbot is a massive vertical integration play to create a mega-aggregator. But LLMs as a raw input to other systems will be transformative for society. You can now take for granted that high...
An interesting economics paper about why OpenAI is moving so strongly into vertical integration. When there's a monopolist whose product is used as an input to a downstream product, they'll vertically integrate to maximize profit. The reason: do...
Vertical integration leads to a single model users can't escape. Users are trapped in wherever their data is, as long as the model is good enough. This integration would ...
...rom that model provider is dangerous. If the models are tied to the UX from the vertical integration, users get stuck to a single model. That requires that one model to be "perfect," which is impossible and dangerous to shoot for. But if you can swap...
...comes significantly more important. That's the world we're skating towards with vertical integration of chatbots if chatbots are the one UI to rule them all.
...e a great deal of negative impact." Yes, exactly! That's one of the reasons why vertical integration of context+model into a hyper-aggregator is so dangerous!
OpenAI going for vertical integration is like cell phone carriers[jj][jk] trying to control what software you can install on devices connected to their network. I can see why the provider...
Three phases of a new disruptive paradigm: 1) Vertical integration at the very beginning for the breakthrough proof-of-existence. One particular centralized / verticalized approach wins, but only for the beginning. T...
...d Google all have entrants in both levels. But this is more an artifact of the "vertical integration for proof of existence" phase of the new paradigm. It's not at all clear to me how success at one layer gives an advantage at the other layer. Arguab...
... was high-resolution, low-latency inside-out VR by the only provider who can do vertical integration and get users to wear it without feeling like a dweeb: Apple. You'll know the Apple Vision Pro gradient is happening when you see people you don't re...