Comment on Why I Think the AI Bubble Will Not Burst
MysticKetchup@lemmy.world 6 days ago
- This is way too brief and lacks any actual evidence for its argument
- It doesn’t touch on the main argument of AI bubble forecasters: that AI costs a massive amount of money to develop and run but does not make nearly enough money to recoup that investment. And people don’t seem to be interested enough in AI to actually pay for it, especially given that the actual price will be very high
MagicShel@lemmy.zip 6 days ago
I pay for it. One of the services I pay is about $25/mo and they release about one update a year or so. It’s not cutting edge, just specialized. And they are making a profit doing a bit of tech investment and running the service, apparently. But also they are just tuning and packaging a publicly available model, not creating their own.
What can’t be sustained is this sprint to AGI or to always stay at the head of the pack. It’s too much investment for tiny gains that ultimately don’t move the needle a lot. I guess if the companies all destroy one another until only one remains, or someone really does attain AGI, they will realize gains. I’m not sure I see that working out, though.
setsubyou@lemmy.world 6 days ago
So they can be profitable because the cost of creating that model isn’t factored in, and if people stop throwing money at LLMs and stop releasing models for free, there goes their business model. So this is not really sustainable either.
MagicShel@lemmy.zip 6 days ago
The people releasing public models aren’t the ones doing this for profit. Mostly. I know OpenAI and DeepSeek both have. Guess I’ll have to go look up who trained GLM, but I suspect the money will always be there to push the technology forward at a slower pace. People will learn to do more with less resources and that’s where the bulk of the gains will be made.
setsubyou@lemmy.world 6 days ago
A startup spun out by a university (z.ai). Their business model is similar to what everybody else does, they host their models and sell access while trying to undercut each other. And like others they raised billions in funding from investors to be able to do this.