Comment on Nvidia Sales Jump 56%, a Sign the A.I. Boom Isn’t Slowing Down
frezik@lemmy.blahaj.zone 7 months agoReally? Companies are going to keep building datacenters that need entire nuclear reactors to themselves without any of that converting into revenue? This is going to to keep going forever in your mind?
The power usage is massively overstated, and a meme perpetuated by Altman so he’ll get more more money for ‘scaling’
GPT-5 is already proof scaling with no innovation doesn’t work. And tech in the pipe like bitnet is coming to disrupt that even more; the future is small, specialized, augmented models, mostly running locally on your phone/PC because it’s so cheap and low power.
Except none of these companies are making money. Like almost literally none. We’re about three years into the LLM craze, and nobody has figured out how to turn a profit. Hell, forget profit, not bleeding through prodigious piles of cash would be a big deal.
Nods vigorously.
The future of LLMs basically unprofitable for the actual AI companies. We are in a hell of a bubble, which I can’t wait to pop so I can pick up a liquidation GPU (or at least rent one for cheap).
That doesn’t mean power usage is an issue. In fact, it seems like the sheer inefficiency of OpenAI/Grok and such are nails in their coffins.
Power usage is what’s sucking the cash. What else could it be? Not all of these companies are building out lots of datacenters the way OpenAI is. They built what they have, and are now trying to make money on it.
The companies that are charging for AI are charging about as much as buyers are willing to pay, but it’s orders of magnitude too small to cover their costs. The big cost is power usage.
Definitely a bubble to be burst at some point unless we are able to harness energy and reduce waste substantially better than now.
MBech@feddit.dk 7 months ago
A lot will fail, sure, but that happens in literally every single developing industry. There are plenty of industries out there that aren’t profitable, but are still going. Tesla wasn’t profitable between 2003 and 2020, yet here we are, where they not only make profit, but they’ve kickstarted the electric cars industry. And that’s despite that they sell shitty cars and their CEO is a nazi.
frezik@lemmy.blahaj.zone 7 months ago
What AI companies are profitable? Besides the one selling shovels in a gold rush.
iopq@lemmy.world 7 months ago
They will be profitable in ten years after everything crashes and only a few are left