alt Hacker NewsFeels like I need to repeat myself more than once a day now: https://news.ycombinator.com/item?id=48697258
> These companies providing tokens, whether SOTA or not, that want to IPO are so fucked as time goes on.
>Can't sell their SOTA models, only slightly better than the open source models for the models they can sell, cost 20x to 50x for good models, a TAM that consists almost solely of developers, with no customer of theirs actually boasting increased profits as a result of AI...
> I fear their time to IPO may have passed.
What on earth could Anthropic and OpenAI Pivot to now?
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The open models are half the equation. The other half is Apple's hardware, which is likely to see major memory bandwidth improvements over the next 2-3 generations and will be capable of running substantial models locally. By that point the open models will be beyond today's SOTA.
I agree with everything you said about their situation, but it's not like that is what will be evaluated in an IPO. There will be continued hype by the companies, lobbying to win support of a corrupt administration, and a narrative spin by clueless media about this AI revolution that will give investors fomo.
> a TAM that consists almost solely of developers
That’s the wrong assumption. These models are good at office docs too.
>I fear their time to IPO may have passed.
They may not get the valuation they want, but as it appears to be on a plateau may be better to offload now?
As per SpaceX, so many big names are involved the media will be controlled to hype it up and the investment banks will forecast 100x revenue in 2 years...
Propaganda? Pay for “facts” to be placed in the model?
I used to agree with you but now do not. I now think the floor for this market is probably no worse than the annual revenue of cell phone plans in the US market. So say, $250 billion.
Now, that probably doesn't justify the valuations and hype being thrown around, but I think it gets at a real revenue number.
I also don't know how that number fits into the funding rounds already raised and VC dreams of IPOs for these two.
This isn't coming from deep analysis on a verifiable source, but I started asking people in my social circle (includes white-collar and blue-collar folks) about their LLM use. The biggest surprise in 2026 for me was that almost all of these people told me about regular (and sometimes sophisticated) use.
A more intriguing observation - I work on the side with high school students and have two college kids of my own. Their LLM usage (and their peers) is much, much lower than expected . . . that's a little counterintuitive given "popular" perceptions I read.