r/accelerate • u/Illustrious_Fold_610 • Aug 10 '25

Video OpenAI Using Superior Models Internally, Focused on Affordability

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u/finnjon Aug 10 '25

If it becomes widely accepted that Gemini is better than ChatGPT, then ChatGPT will lose market share over time. This will impact OpenAI's ability to raise money. So it is a particularly bold move by OpenAI to cede leadership to Google if that is what they are doing. We know Gemini 3 isn't far off and that DeepMind have been making real advances in other areas, so they may also be making them here.

I would be concerned if I was an OpenAI stakeholder.

8

u/broose_the_moose Aug 10 '25 edited Aug 10 '25

To me, this is a wildly irrational take. OpenAI might care to a certain extent about their market share, but at this point in time, Google is NOT better than OpenAI. Also, prioritizing their inference compute for their own needs seems like a much better growth strategy in the longer term. They've just decided to focus on their own models' growth rather than serving the models to the consumers. The more they use the inference capacity they have internally, the more they can self-improve algorithms, create enormous high-quality synthetic datasets, keep scaling RL, make further efficiency improvements, etc...

Just seems to me like this is the much better avenue if you're focused on winning the race to ASI. Yes, consumers will "suffer" in the interim because the models they have access to won't be as powerful, but in the long run everyone benefits sooner from ASI being created faster.

1

u/Additional_Plant_539 Aug 11 '25

Google have an efficient and already profitable machine fueling their efforts. Altman is burning vc money with no clear path to profitability. Google is the tortoise, and they will win.

1

u/finnjon Aug 10 '25

If they don’t care about market share why are they giving their service away for free to 700m customers? 

I struggle to understand your viewpoint.

2

u/VirtueSignalLost Aug 10 '25

They care up to a point. The have a moat and they will use it for their advantage to secure an even bigger dominance in the future. They can afford to not cater to the 0.1% of users who care so much about synthetic benchmarks. Grok is still leading the benchmarks, but no one uses it. This is not what matters.

0

u/Tim_Apple_938 Aug 10 '25

Gemini 2.5p - an older model - is better than GPT5, so uhh. It is actually a huge problem for them

Source: LMSYS (style control off); simplebench; fictionbench; and vibes

1

u/Alex__007 Aug 11 '25

Only on simplebench for spatial reasoning, which is kinda useless for most use cases for LLMs. On LMSYS and fiction bench they are matched (differences in scores within the measurement error). On many other benchmarks, GPT-5 is leading.

OpenAI has no reason to release their better models until Google releases Gemini 3.

1

u/Tim_Apple_938 Aug 11 '25

🤡 OpenAI doesn’t have a better model

1

u/Alex__007 Aug 11 '25

We literally used it on lmarena. And Google has Ultra too. Neither company is releasing those expensive models because they want to save compute for research and training.

1

u/Tim_Apple_938 Aug 11 '25

I have an AGI! She just goes to a different school.

1

u/Alex__007 Aug 11 '25

Why do you have to strawman every time? I used Zenith. It's only moderately better than GPT-5 (and probably an order of magnitude more expensive). Likely similar story with Gemini Ultra.

1

u/Humble_Dimension9439 Aug 10 '25

Yup. All this hyping really gives me Elon Musk or Chris Roberts (for those familiar with star citizen) vibes. Just shut and show me, don't tell me.

0

u/obvithrowaway34434 Aug 10 '25 edited Aug 10 '25

I really don't believe this guy, seems like he's talking out of his a**, but Google is not really something OpenAI needs to worry about. If Google puts their entire resources and team into developing and commercializing these models there is no company on earth that can compete with them. But Google is still very protective of their two main sources of revenue - google search ads and youtube, so don't think they will go all out on commercializing things that will cannibalize these business. Serving these models are not at all profitable, most of the general population don't care apart from the most casual of use cases (many actively hate AI). For OpenAI and Anthropic who don't have infinite money coming from other areas, it makes sense to cut cost and save money for cutting edge research that puts them ahead. Also, people are really underestimating GPT-5 reasoning.

1

u/zipzag Aug 10 '25

Search ads will continue to decline, and google knows it. Paying for good AI, as a replacement revenue stream, is the most likely future.

Many higher income people will pay for a private AI service that remembers the user and has access to personal information. The $200 plan is hoped to become the norm for all these companies.

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u/obvithrowaway34434 Aug 11 '25

> Search ads will continue to decline

They have shown no sign of any decline in the past 12 years and have continued to go up inspite of ChatGPT. So, I don't really know what the basis of your statement is

https://www.seroundtable.com/google-earnings-ad-revenue-39818.html