The high CapEx for companies creating LLMs far outweighs the revenue they're bringing in. Companies using LLMs aren't doing much better than they were pre-chatGPT. So where will the real profit come from when its all said and done?

We're seeing the true nature of LLMs as an evolution on search. Its much faster to get an exact answer from an LLM than it is from a standard Google search. You can interact with the results and get the info in exactly the format you want. Even code generation is an advanced form of search. Before LLMs, we were Googling code examples and looking through Stack Overflow posts to find answers to our problems. Now we ask the AI directly to generate the code. Its a shorter path for the same journey: A coding problem appears, you type some text to get an answer, you apply the answer to your problem.

The real disruption will be in the search engine space. Over half of Google's revenue comes from search based advertising. Unless they become the preferred LLM their business model will suffer. Which also means that the other AI companies will start placing ads in their LLM responses. Its the way the world works, either you produce something people want to pay for or you advertise for the companies who can achieve that.