Coding with LLMs (Claude Code, OpenAI Codex) is often presented as the ‘killer app’ for Generative AI. But looking at data, it seems the one piece of the puzzle missing is actual cost. …
Then they will go bankrupt, their assets and IP will be sold for pennies on the dollar, and those that follow them will be able to make a profit serving the established demand without the debt burden of the R&D that created it. It’s a common pattern for first-movers to not benefit from the industries they create.
They will never collect revenue that will exceed the amount of capital that has been invested, because economics of scale do not work with LLMs.
Then they will go bankrupt, their assets and IP will be sold for pennies on the dollar, and those that follow them will be able to make a profit serving the established demand without the debt burden of the R&D that created it. It’s a common pattern for first-movers to not benefit from the industries they create.