We did not anticipate that end-user demand would outstrip Nvidia’s GPU supply. The bottleneck for growth for many companies soon became not customer demand, but access to the latest GPUs. Long waits became the norm, and a simple business model emerged: pay a subscription fee to skip the queue and get a better model.
Vertical separation has not yet occurred. We still believe there will be a separation between “application layer” companies and the underlying model providers, with model companies specializing in scale and research and application layer companies specializing in product and UI. In practice, this separation has not yet clearly occurred. In fact, the first successful user-facing applications have been vertically integrated.
The competitive landscape is intense, and incumbents denmark mobile database are reacting quickly. Last year, there were some overcrowded categories in the competitive landscape (particularly image generation and copywriting), but overall there were large gaps in the market. Today, many corners of the competitive landscape have more competition than opportunity. The rapid reaction of incumbents, from Google's Duet and Bard to Adobe's Firefly - and the willingness of incumbents to finally decide to take a "risk" - have increased competitive pressure. Even at the base model level, we are seeing customers setting up their infrastructure to be neutral between different vendors.