switching costs

“One thing that drives durability, going back to our competitive advantage period, is switching costs. If I start relying on one of these things as my memory, and I don't have a way to pull that out and jump to something else, I'm stuck. Like, I am hook, lock, …”

“Today, you know, as it stands, I would say if you were to rate these LLMs on their switching cost with zero maybe being none and a hundred being perfect, I'd say they're at two. Like, it's remarkably low”

“Today the switching costs based on every developer I've talked to are we mentioned this before, but about as low as you could possibly imagine. And if you're just using big context windows and not doing fine tuning, then you're just not, you can bounce from on…”

“If I have an AI partner where I can simply say, who did I send that email to? Like, that's really, really powerful. And I think the switching costs are insurmountable if someone gets to that place first.”

“If you get memory, the switching costs explode.”

“I would continue to believe that OpenAI's most likely chance to long-term success comes from switching cost and lock-in more than it will come from staying on the edge of the model race.”