such a great, well reasoned piece by
@tarunchitra
i spent years on the OSS team
@Azure building commercial businesses around open software (and OSS hated microsoft pre-satya)
linux, kubernetes and oss dbs are now billion dollar businesses in azure. vs code and .net are now open.
to win you had to know the chessboard and build bridges to communities at the right layer of the stack. tarun's laying out the map for open weights.
tarun is spot on that OSS incentives followed from having more upfront cost to develop/maintain vs. ongoing cost to use and run the software. open weights will have its own business models given its more compute/capital intensive both to develop (training) and use (inference).
we think a lot about this for
@darkbloomai in particular, which doesn't neatly fit in any of his four horseman buckets.
we're sort of like a rebater that can offer a structural discount vs. model builder rates because our underlying machines are idle/sunk cost consumer hardware. we're also kind of a specialist, except our HW arrangement doesn't justify a premium, its what lets us offer cheaper inference.
early days, but as bertrand competition drives provider margins down to his Souq endgame of OpEx floor compression, offering access to machines with near zero reservation price may be the winning value prop.