The price is high because there is sustained demand. Hah! No but seriously. For a variety of reasons, owning a car in Singapore is a step change in QoL. Infrastructure reasons: - abundant parking at destinations (e.g. malls), home (HDB flats, condominiums) due to fairly generous car park lot mandates. IIRC, HDBs, where 85% of Singaporeans live, have until fairly recently had a 1:1 unit:lot ratio. Similarly for condominiums. A lot of these are progressively being scaled down especially near train stations, but buildings and giant multi storey parking lots are fixed infrastructure that will be around for decades. Abundant parking will be available for decades still. - roads are wide and well maintained and well connected. The experience: - because the number of cars on the road are controlled through the COE system, the experience of driving is good. We get slow traffic but it is extremely rare that we get the kind of multi-hour jams that other countries experience. - the door-to-door experience saves tons of time. In public transport, I walk (7m), wait for the train (3m), sit on the train (36m), get out at the interchange and walk to another platform (2m), wait for the train (2m), sit on the train (12m), exit and walk to my destination (11m). Total time: 1h14m. In a car, I walk to my car (2m), drive to my destination (35m), walk from the car park to my destination (1m). Total time: 38m. x2 for the return trip, and the car saves you a whole hour a day. - the public transport experience is not so good if you have a family or are disabled. Don't even mention cyclists, culturally we spit on them here. The status: - it's true, the car is a status symbol. You don't know it until you get into conversations where driving a "mere BMW" as opposed to a mercedes is looked down on, or when someone mentions that driving a hatch is "not appropriate" (to station). Sedans are still popular here because they're "executive". Yes, these are all real conversation points I've been in. Combine all of the above and owning a car in Singapore means you save tons of time, is technically "affordable" after loans, and you get to feel like you made it. So there's huge pressure to get a car. And once you're hooked, it is very difficult to give it up. Then you have other reasons, like Taxis and Grab compete with individuals for the COE, and parents who "made it" in the boom years buying cars for their kids, and foreign money coming in. But I don't know how big these effects are.
The path to vast OpenAI profitability is trivial: advertising. Monetizing several hundred million users = $100+ billion ad network. 900 million active weekly users. Silicon Valley can do ad networks extraordinarily easily. Anybody doubting the ability of OpenAI to build an ad network around GPT will likely be embarassed in the near future. The path to substantial profitability for Anthropic is questionable. The Chinese LLMs threaten them by far the most of the three major US LLMs. The money for Anthropic is certainly not in $20-$200 subscriptions. And they don't have anywhere near the consumer potential that GPT does, in terms of unleashing an ad spigot. So how far will the API money scale while being undercut by China. OpenAI has to fight with Google for the ad business, they're specifically building Gemini to focus on consumer + search. Anthropic's business looks cute next to Google's search ad business (which is entirely at risk in this inflection). Meta looks like the biggest potential loser right now, ad dollars will be sucked out of the rotting Facebook network (not Instagram) and redirected to the rapidly expanding, hyper rich context LLM interaction. Advertising on Facebook will feel like running dumb banner ads on Excite in a few years, compared to what GPT will know about its users. People that think Chinese LLMs are a general threat, don't understand consumer destination services, which is what GPT's future is. China currently has nothing to threaten with in that realm. There is half a trillion dollars of advertising up for grabs.
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