I can't see how niche LLM providers beat Hyperscalers (Google and Microsoft) in quality or cost. Claude is popular, but I bet a double-digit percent of customers would drop it if they tried Gemini.
How is Microsoft even in the conversation? They weren't able to develop their own foundational models despite trying. They certainly wish they had full control rather than the frenemy relationship with OpenAI...
Right, the idea isn't that the hyperscaler is incapable of developing the foundational models, its the foundational model developer incapable of continuing to afford to provide the foundational models.
Based on statements from their CFO, major personnel shake up in upper management, and other things, It sounds like they rebooted their AI initiative at the end of Q1 and they are in ramp-up mode now.
