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The case for OpenAI’s distribution as its competitive edge

a16z shared excerpts from an essay arguing that OpenAI’s distribution strategy and ability to create new kinds of customers will help it win.

a16zA1
3 Sources, 11d ago, first seen 11d ago

TLDR

In excerpts shared by a16z, the essay’s author argues that creating new behavior matters more than having a sticky model. The author calls the model layer “shockingly substitutable” and predicts that OpenAI’s distribution will help it build the best models, chips and products.

Combined views

142.3K

3 Sources, first seen 11d ago

959 likes82 comments666 saves111 reposts

Combined views

142.3K

3 Sources, first seen 11d ago

959 likes82 comments666 saves111 reposts

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3 Sources

a16z@a16z"We think that OpenAI will win because they are so good at creating new kinds of customers, and because they have the most durable distribution strategy." "Intelligence is everywhere. Anyone can do nearly anything; but most people aren't, yet." "OpenAI did not set out to be a consumer company. They kind of fell into it by chance with the release of ChatGPT." "The GPT chat interface, reasoning, tool calling, and Computer Use were all big breakthroughs that simplified and focused the direction of the technology, and made it usable." "The ability to build 'general knowledge' into your product is actually dependent on your distribution strategy." "As of now, the model layer remains shockingly substitutable." "The primary question that matters is not 'is your model sticky', it's 'are you creating new behavior?'" "OpenAI will have the best models, chips and products because they have the best distribution, not the other way around." Full piece from @DavidGeorge83 on the purpose of a business, and what OpenAI understands about it: https://www.a16z.news/p/openai-understands-something-important11d
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    OpenAIa16zDavid George

    3 Sources

    a16z@a16z"We think that OpenAI will win because they are so good at creating new kinds of customers, and because they have the most durable distribution strategy." "Intelligence is everywhere. Anyone can do nearly anything; but most people aren't, yet." "OpenAI did not set out to be a consumer company. They kind of fell into it by chance with the release of ChatGPT." "The GPT chat interface, reasoning, tool calling, and Computer Use were all big breakthroughs that simplified and focused the direction of the technology, and made it usable." "The ability to build 'general knowledge' into your product is actually dependent on your distribution strategy." "As of now, the model layer remains shockingly substitutable." "The primary question that matters is not 'is your model sticky', it's 'are you creating new behavior?'" "OpenAI will have the best models, chips and products because they have the best distribution, not the other way around." Full piece from @DavidGeorge83 on the purpose of a business, and what OpenAI understands about it: https://www.a16z.news/p/openai-understands-something-important11d
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