OpenAI enthroned as the Levis of Tech
Warning
OpenAI launched its ChatGPT API on GPT-3.5-turbo. $0.002 per 1,000 tokens, and you can use it for things that aren't chat at all. Shopify, Instacart, Quizlet, and Snap are among the first users. Another big moment for software. The AI-native-era gold rush has just begun.
Levi's was the real winner of the gold rush. It made a fortune selling miners the tools they needed to dig for gold, and never joined the dig itself. It was the arms dealer in a quiet war. After telecoms like AT&T, AWS was the latest Levi's of tech. The gold rush created huge demand for jeans and hammers, and the move to digital created huge demand for cloud services like AWS. OpenAI just made it official. It wants to be the next Levi's.
The rise of AI-natives
Look at how the previous Levi's, AWS, reshaped tech. Cloud computing changed how we build software. Some of the tectonic shifts are below.
- Fewer expensive On-Premise Engineers -- We no longer need on-premise system engineers to configure servers and manage infrastructure. We deploy apps without worrying about the hardware underneath.
- Shift from Pets to Cattle -- In the early days, companies treated servers like pets, each with a unique name and its own care. As the number of servers grew, companies started treating them like cattle and invested in automation that could manage a whole herd at once. That let them scale up fast without giving up reliability or performance.
- Rise of MSA and Serverless -- AWS made it easy to spin up and run small, independent services, and microservices architecture grew out of that. Developers build complex apps out of small modular services, which helps reliability and performance. Then AWS Lambda arrived in 2014, and developers could run apps without managing servers at all.
So what happens with AI-natives?
- Fewer expensive Data Engineers & ML Engineers -- AI-native platforms let non-experts build and deploy AI models, so many teams need fewer dedicated AI engineers.
- Shift from building models from scratch to using pre-built models -- AWS hands you pre-built infrastructure. AI-native platforms hand you pre-built models you customize and train on your own data.
- Rise of automation tools for building and deploying AI models -- Automation let companies run huge server fleets in the cloud. AI-native platforms let them automate building and deploying models.
- Shift from monolithic AI applications to microservices-based AI architectures -- Microservices let companies build complex apps from small modular services, and the same pattern lets them build complex AI apps from small modular models.
- Democratization of AI development and deployment -- AWS democratized cloud computing. AI-native platforms are doing the same for AI.
One big question is still open. Will OpenAI become another dumb pipe?