Once all competing language models and providers have hoovered up all the existing knowledge and can do similar things with it then margins for that part of the story will shrink rapidly.
It will all be about access to new information, access to customers (such as advertisers) and access to users attracted to other aspects of the platform as well.
I think producers of new content and their distribution platforms will have a lot of leverage. Youtube, Facebook, TikTok, Spotify, Apple, Amazon, Netflix, traditional publishers and perhaps even smaller ones such as Substack and Medium, are all gatekeepers of new original content.
I think Google is best positioned to make the economics work. Unfortunately, they don't appear to have the best management team right now. They keep losing focus. Perhaps the danger of their core business getting disrupted will focus their minds.
The content is a bootstrapping tool. Once the language model gets critical mass it gets further training data from its interactions with users, which are private to the language model's developer. It's like how Google Search bootstrapped off the content of the web, but the real reason you can't replicate Search today is all the information about who is searching for what, which links they actually click on, and how long they spend on the page.
It will all be about access to new information, access to customers (such as advertisers) and access to users attracted to other aspects of the platform as well.
I think producers of new content and their distribution platforms will have a lot of leverage. Youtube, Facebook, TikTok, Spotify, Apple, Amazon, Netflix, traditional publishers and perhaps even smaller ones such as Substack and Medium, are all gatekeepers of new original content.
I think Google is best positioned to make the economics work. Unfortunately, they don't appear to have the best management team right now. They keep losing focus. Perhaps the danger of their core business getting disrupted will focus their minds.