Post

If an in-house model fails, management faces consequences; if you pay Anthropic and project fails, mgmt evades blame (“no one was ever fired for using Microsoft”). Hence cloud services exist, in spite of higher costs. Mgmt may not be this stupid as concerns ai, but it’s possible

I would qualify this, though, because it won’t take much do-it-on-premises self-reliance to trash the big ai business model, such as it is, - it may be self-trashing. I am forever amazed at how managers will fire employees in favor of expensive vendors in order to avoid blame.