LLMs: great for business but bad business
The true value proposition of LLMs lies in their ability to convert unstructured data from sources like websites and documents into structured information with reasonably high accuracy. Yet, the real profit lies in the products built on top of LLM technology. Each year, approximately 4 million books are published worldwide. On average, a book contains fewer than 120,000 words, translating to less than 160,000 tokens in LLM (Large Language Model) terms. Imagine if every single one of these books were generated by GPT-4鈥攊t would amount to an astounding 640 billion tokens. At $5 per million tokens, generating all these books would tally up to about $3.2 million! Let鈥檚 say the book market represents only about 1% of the total LLM text generation opportunity. Even then the total addressable market of LLM text generation is approximately $300 million annually鈥攁 modest figure when compared to AWS, which raked in $90 billion in 2023 as the cloud market leader.
