people will stop using it for all the things they’re currently using it for
They will when AI companies can no longer afford to eat their own costs and start charging users a non-subsidized price. How many people would keep using AI if it cost $1 per query? $5? $20?
OpenAI lost $5 billion last year. Billion, with a B. Even their premium customers lose them money on every query, and eventually the faucet of VC cash propping this whole thing up is gonna run dry when investors inevitably realize that there’s no profitable business model to justify this technology. At that point, AI firms will have no choice but to pass their costs on to the customer, and there’s no way the customer is going to stick around when they realize how expensive this technology actually is in practice.
philosloppy@lemmy.world 2 weeks ago
consider the Dot Com Bubble: the internet obviously didn’t disappear but that doesn’t mean there weren’t serious economic consequences.
GlenRambo@jlai.lu 2 weeks ago
ELI5. Because I was actually 5 when that happened.
nyan@lemmy.cafe 2 weeks ago
The dot-com bubble? A whole bunch of investment money was poured into businesses operating over the Internet from around the time dial-up became widely available. A few years later, investors realized that “on the Internet” wasn’t necessarily the key to making a crapton of money and the stock market crashed. A bunch of companies (many of which never made it to profitability) went under, and a fair number of people lost their jobs. Pets.com was one of the more notable victims.
This doesn’t, however, mean that no business is done over the Internet today.