It's a weird business where everyone is offering an environmentally unsupportable service at below cost, hoping to outlive the competition.
Market share of a negative profit market.
this post was submitted on 17 Jun 2026
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It worked for netflix and the steaming services. Now terrestrial (cable) is dead and adsupported streaming tiers have returned lol.
It's how every tech company that "disrupts" a market or indistry works. Uber started of burning shit tons of cash operating at a loss till it replaced enough Taxi services then jacked up the prices.
The problem with AI is that they cannot increase the prices enough to be profitable. The AI companies are waiting for future hardware tech that will be energy efficient enough to make AI profitable before they run out of capital to burn.
The problem with AI is that they cannot increase the prices enough to be profitable.
I saw something about the SpaceX IPO that said for it to be justified at that price, everyone on earth with some sort of money (they defined it as earning at least $14,000/year) had to become an xAI consumer and spend $28,000/year. Seems reasonable /s
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I was thinking about that, but it did make governments move to digital programming (eg BBC, NPO), which they likely wouldn't have done if it wasn't for Netflix. I think it also improved the internet speeds here in NL significantly.
That's not correct - the BBC announced iPlayer in 2003, tested 2004 onwards and finally launched in 2007 after being delayed by lobbying. The iPlayer was held back from full launch due to concerns from commercial competitors - in particular broadband providers lobbied against the iPlayer service because they feared the "pressure" it would put on the broadband infrastructure.
Netflix launched their streaming service in 2007.
Netflix did not originate the idea of streaming (nor did the BBC to be clear), much like Apple didn't originate the smart phone. Netfiix did however do it better than it's competitors, particularly the incumbents in the commercial sector.
I remember iPlayer in 2007: it was a mess, using DRM and P2P, requiring a full download before watching it. I wouldn't call that a streaming service at all. Shows had to be watched within a week of broadcasting.
I welcome feedback but starting a comment with 'thats not correct' and then blatantly being incorrect is just some ol' bullshit.
I never mentioned that either of the companies originated the idea of streaming. I only posited that Netflix pushed governments (in this case the Dutch and UK) to move to digital programming.
Painful memories of drm do come haunting back, but I do wonder if any streaming service was much better at the time?
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Market share of a negative profit market.
Yes. That was my reaction, too.
If I start giving away autographed headhsots, have I then also cornered an emerging market? lol.
Wait until the winner shows up and proceeds to absolutely wreck everything with fees and subscriptions jammed into everything remaining that didn't need AI.
Look up commoditizing the compliment.
So, people are falling for Anthropic's marketing scheme?
Personally, I find myself using the Chinese alternatives more and more as they are just way cheaper.
The good thing is that a deepseek can be run locally relatively well with consumer hardware. I trust chinese companies as much as i trust american companies with my data and my prompts.
You have 170+ GB VRAM at home? (:
I mainly use DeepSeek v4 Flash now, it's the cheapest around and the quality is high enough for coding. At work we're throwing tons of money at Claude, but even there I usually stick to Sonnet (as Opus is burning money).
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The company taking most of chatGPT's market share is actually Gemini, which I think is cheating because it's basically just padding the numbers with random google searches.
Can't be Europeans as they're locked out from the new models LOL
As is everyone?
What scheme, their last models have been so much better than OpenAI’s it’s no surprise people are moving to Claude.
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Who the fuck cares
That depends; it will most likely cause some pretty serious issues outside the AI space. When that bubble finally pops, it'll probably make the dot-com bust look like a bathtub fart. Knock-on effects over non AI industries, and a lot of little bitch CEO's that put all their money/companies money in AI will now be out a whole lot of cash and go on (more) firing sprees.
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Me. I care.
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AI is becoming a commodity. Companies with such high burn rates will have a hard time staying alive.
Especially with open weights models available from cloud AI providers.
Yeah the open weight models are getting good enough that a lot of people can just host their own for most tasks.
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not a gambling man but if i was... https://polymarket.com/event/sam-altman-in-jail-by
This is my first time actually navigating to one of these websites. God damn it's so much more dystopian than I even imagined.
For those who didn’t read past the headline: OpenAI is still growing, but competition is growing faster.
Mistral or Lumo way to go
I don't know what models power Lumo, but Mistral is so far behind the competition it's not even funny.
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Yeah, Mistral is just… not very good anymore.
Even strictly compared to open weights models. Everything I’ve tried feels obsolete.
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The free market strikes again.
Is anyone actually using Gemini directly?
It sucks total bum compared to even some quality mid tier models on huggingface. Even the joke about ChatGPT was that it performs better than Google's equally bum SEO'd search engine.
I feel like Google is suffering much less at throwing it into all of their apps than MSFT doing the same with copilot.
It’s still a leading long context model, IMO.
But I think it feels dumb because the default “harness” is pretty simple and dumb, more than the base LLM.
That, and it’s really awful at 1 temperature (which is its default).
Maybe some leadership is guzzling Kool-aid over how bad Google search has gotten? Because it leans on that pretty heavily, without many other tools.
I wish headlines would start to qualify market share. They had over 50% of the active usera/subscribers/acticity or something like that. The addressable market on the other hand isna lot more people and they probably never got anywhere close to 50% of that.
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