> It's not any more complicated than that.

It is more complicated than that when the valuations and business plans are contingent on those companies AI having complete dominance at every level.

If companies only use frontier models for occasional difficult tasks, not only does that affect volume, it basically elminates stickiness and incentivizes companies to instead of using their products continuosly, find ways to move from the expensive stuff to the cheaper stuff.

Yes but that’s a tiny portion of AI use cases. Maybe 1-2% max. The big labs need a lot more than that to survive.

You’re assuming other model creators can’t build these mega models. Evidence is they’ve simply decided it’s a fools game to do so and they’re focused on where the use cases are.

Fable is behind Opus (which is also much cheaper) at this point in benchmarking.