Hah, they wish. It’s a business, and they need a return on investment eventually. Maybe if we were in a zero interest rate world again, but even that didn’t last.
until AI investor money dries up
Is that the latest term for “when hell freezes over”?
WanderingThoughts@europe.pub 3 weeks ago
otter@lemmy.ca 3 weeks ago
Unless I misunderstood, it will eventually dry up? Investors aren’t going to be willing to give money with no returns indefinitely
massacre@lemmy.world 3 weeks ago
Microsoft steeply lowered expectations on the AI Sales team, though they have denied this since they got pummelled in their quarterly and there’s been a lot of news about how investors are not happy with all the circular AI investments pumping those stocks. When the bubble pops (and all signs point to that), investors will flee. You’ll see consolidation, buy-outs, hell maybe even some bullshit bailouts, but ultimately it has to be a sustainable model and that means it will cost developers or they will be pummeled with ads (probably both).
A Majority of CEOs are saying their AI spend has not paid off. Those are the primary customers, not your average joe. MIT reports 95% generative AI failure rate at companies. Altman still hasn’t turned a profit. There are Serious power build-out problems for new AI centers (let alone the chips needed). It’s an overheated reactionary market. It’s the Dot Com bubble all over again.
There will be some more spending to make sure a good chunk of CEOs “add value” (FOMO) and then a critical juncture where AI spending contracts sharply when they continue to see no returns, accelerated if the US economy goes tits up. Then the domino’s fall.