Comment on Welcome to Campus. Here’s Your ChatGPT.
fubarx@lemmy.world 2 weeks ago
Once these AI companies go belly-up, those people with critical thinking and research skills will be able to name their price.
Those abilities have been in high demand for millenia. Focus on the basics.
chaosCruiser@futurology.today 2 weeks ago
Probably not going to go belly-up, in a while, but the enshittification cycle still applies. At the moment, investors are pouring billions into the AI business, and as a result, companies can offer services for free while only gently nudging users towards the paid tiers.
When the interest rates rise during the next recession, investors won’t have access to money any more. Then, the previously constant stream of money dries up, AI companies start cutting what the free tier has, and people start complaining about enshittification. During that period, the paid tiers also get restructured to squeeze more money out of the paying customers. That hasn’t happened yet, but eventually it will. Just keep an eye on those interest rates.
taladar@sh.itjust.works 2 weeks ago
Don’t be so sure about that, the numbers look incredibly bad for them in terms of money burned per actual revenue, never mind profit. They can’t even pay for the inference alone (never mind training, staff, rent,…) from the subscriptions.
chaosCruiser@futurology.today 2 weeks ago
As long as they can convince investors of potential future revenue, they will be just fine. In the growth stage, companies don’t have to be profitable because the investors will cover the expenses. Being profitable becomes a high priority only when you run out of series F money, and you the next investors can’t borrow another 700 million. It’s a combination of having low interest rates and convincing arguments.
taladar@sh.itjust.works 2 weeks ago
The difference between AI companies and most other tech companies is that AI companies have significant expenses that scale with the number of customers.