It is a four year contract. OpenAI is hoping they’ll be able to suppress their competitors long enough to regain their lead and firmly established a dominant position in the market.
I’m not too worried though for two reasons. First, I’m confident they’ll eventually be in breech of their memory contracts for being unable to pay - as the whole AI market is a house of cards, and has no real path to profitability beyond hopes and dreams. Banks and angel investors will eventually start asking ‘where are the profits’ and begin pulling out the rug. Second, the chip suppliers began ramping up production (as you suggest) some time back, so the current crazy price increase should only be temporary once they have increased supply output in a year or so. They would have to sign new contracts to get their ‘40% deal’ again, and the memory giants will have much higher price demands for any such deals in future, and I don’t think OpenAI will have the money.













His opinion is actually that AI can use his code no problem, they just have to pay a fee.
The problem is that the big LLM AI companies will just say… ‘Fuck off’, because they don’t like paying for any data, and they also think their models will be advanced enough to write their own libraries soon (if not now, depending how much they believe their own marketing hype).
Pricing is an additional unanswered problem in his new model. As a hypothetical: if 1000 traditional OSS users generate $1000 value in conversion to paid users in his old model - what would an AI license cost? Because one license (eg to Anthropic/Claude) would theoretically be cutting off millions of users, maybe 80%+ of his userbase. Would he ask for millions as a licensing fee?
Whole idea is half-baked IMO, but I am sympathetic to the bullshit situation he finds himself in.