The key is Gemini being free through AI Studio. This makes their technical improvement more impressive when OpenAI sells their best models at ridiculous prices.
If Google engages in price dumping as a monopolist remains to be seen but it feels like it.
The LLM race is fast paced and no moat has developed. People are switching on a whim if better models (by some margin) show up. When will OpenAI, Anthropic or DeepSeek counter 2.5 Pro? And will it be before Google releases the next Pro?
OpenAI commands a large chunk of the consumer market and they have considerable funds after their last round. They won't fold this or next year.
If Google wants to win this they must come up with a product strategy integrating their search business without seriously damaging their existing search business to much. This is hard.
If Google engages in price dumping as a monopolist remains to be seen but it feels like it.
The LLM race is fast paced and no moat has developed. People are switching on a whim if better models (by some margin) show up. When will OpenAI, Anthropic or DeepSeek counter 2.5 Pro? And will it be before Google releases the next Pro?
OpenAI commands a large chunk of the consumer market and they have considerable funds after their last round. They won't fold this or next year.
If Google wants to win this they must come up with a product strategy integrating their search business without seriously damaging their existing search business to much. This is hard.