Comment on Everyday AI looks more like the '08 housing bubble

• null_dot@lemmy.dbzer0.com ⁨1⁩ ⁨month⁩ ago

  Is that because they’re so focussed on growth and advancement though?

  Right now there’s no incentive for efficiency. The focus is using venture capital to grab market share by implementing new products.

  If suddenly everyone realised that the new iterations are more costly without any new functionality, the focus would switch and it might be worthwhile.

  Right now, you can buy a $500 GPU, and run an LLM locally that can help you draft documents or code or transcribe audio. If that were scaled up to a subscription service surely it could be reasonably priced, yet profitable.

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  • Dogiedog64@lemmy.world ⁨1⁩ ⁨month⁩ ago

    If all of that were the case… why aren’t they ALREADY profitable? There are only 2 companies in the actual LLM/AI space, OpenAI and Anthropic, and OpenAI is already so dominant that Anthropic is a noncontender. Since that is the case, why aren’t either of them profitable? If they were, they’d be screaming about it constantly; Altman would be on stage every single goddamn day boasting about it; OpenAI would be posting monthly, if not WEEKLY profit reports, just to show how much money they were making as “”“The Future™️”“”; public investors would be POURING IN like nothing else mattered!!!

    So where is it? Where’s the profit? Where are the reports and press conferences, the investor statements and the IPO’s? Where’s the goddamn money, Lebowski???

    And don’t say they’re in the “growth stage” or whatever. 4 years in and a TRILLION DOLLARS LATER, there’s no profit to be seen, no remarkable products to use, nothing of substance except billions burned building bespoke data centers and polluting the planet. The whole AI “”“industry”“” is a lie.

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    • trolololol@lemmy.world ⁨1⁩ ⁨month⁩ ago

      I could nitpick many inaccuracies in what you just said, but the main message that they are not profitable is on point.

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    • null_dot@lemmy.dbzer0.com ⁨1⁩ ⁨month⁩ ago

      They’re in a growth stage.

      I don’t agree with them, but venture capitalists believe they are inventing a god, and that the first to achieve it will enjoy never before seen power, control, and ultimately wealth.

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    • lemmeLurk@lemmy.zip ⁨1⁩ ⁨month⁩ ago

      Because they are still chasing a breakthrough. It’s one thing offering LLMs as a service or selling models, it’s another to develop new and better ones. It’s just a huge research cost. I’m pretty sure if they would stop research on new models and slightly increase their prices, they would be profitable. But they don’t want to fall behind.

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