Comment on Nvidia becomes first company to reach $4tn in market value
FRYD@sh.itjust.works 1 week agoNo if they didn’t already dominate their respective markets, they’d have to actually compete against other companies. In a competitive market, there would be no reason to invest hundreds of billions of dollars into LLMs which are unprofitable, inaccurate, and have very limited use cases. AI wouldn’t be a bubble if these companies had any incentive to make good products and competition is supposed to be that incentive.
Maybe down the line, the tech sector would’ve had an AI boom anyway. As it stands however, there is no real race to dominate AI. It’s a scramble to try to sell LLMs as intelligent so they can get AI money without actual AI tech.
Blue_Morpho@lemmy.world 1 week ago
That’s not how capitalism works at all. Companies are spending money on AI because they need to compete against other companies. In the absence of competition, companies do not spend money chasing risky new revenue streams but milk their existing base.
If there was only Microsoft, and no other software company on the planet, Microsoft would not spend money on AI because they wouldn’t need to.
A big part of Marx’s criticism of capitalism is the waste it creates through duplication of effort.