Comment on OpenAI plans to launch an AI-only TikTok clone
Alphane_Moon@lemmy.world 4 days agoWell, they clearly have too much money
They may have a lot of money, but they definitely don’t have anything close to a reasonable return on investment. I believe the total revenues from “AI services” are sub $50 billion per year compared to at least x20 times capex and likely a very high amount of opex (hundreds of billion) per year.
MagicShel@lemmy.zip 3 days ago
Agreed. I would imagine they are looking for new revenue streams because it feels like just running an LLM costs more than the derived value. Right now investors are pouring money into AI by the swimming pool full in the belief that a renaissance is right around the corner. But the view from the ground is that the value is never going to return that investment without getting creative.
And when companies get creative rather than rely on fundamentals that drive sustainable growth, it’s generally a steep slope to enshittification.