posted in Technology
AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.
futurism.com/future-society/ai-financial-bubble-openai-billions-failure
Replying to @eicker@lemmy.world
WeWork was declared a failure when it lost 6 billion in a year. OpenAI is net negative 17 billion a year…
Replying to @Akh@lemmy.world
There is quite a difference from an investor standpoint in a product that replaces all human labor vs coworking space.
Replying to @darvocet@infosec.pub
I still have yet to see it adequately replace any human labor
Replying to @PattyMcB@lemmy.world
Then you haven’t been using the right models or trying.
Replying to @darvocet@infosec.pub
Let’s say for a moment that AI really is as capable as AI bros want you to believe it is. Having used some AI models at my work (network engineer), I’m not so convinced, but I’ll put that aside for a moment.
The pinch of the AI vise is going to be the cost. All the AI companies are running at loss to try and capture the market, and they’ll need to charge a lot more for access to AI once a winner is determined.
Are you willing to pay 10x what you pay right now for access to an AI agent? Because that’s looking like what they’ll have to do in order to turn these companies profitable.
Replying to @BluescreenOfDeath@lemmy.world
All the AI companies are running at loss
That is if you include training. Look at deepseek for an idea of inference costs. At that level AI coding is sustainable (but not worth $2tn).
Replying to @Knock_Knock_Lemmy_In@lemmy.world
Why wouldn’t you include training? Training is vital to their product.
Replying to @wewbull@feddit.uk
Is it? It’s vital to the tech giants marketing and trillion dollar valuation. But I don’t think it’s vital to most of their clients anymore.
Replying to @Knock_Knock_Lemmy_In@lemmy.world
If you want it’s “knowledge” to be up to date, the training never ends.
Replying to @wewbull@feddit.uk
In theory the “reasoning” part doesn’t need a knowledge update.
Cost/benefit maybe the knowledge update only needs something every 5 years.
Basically I can see a world where inference is provided and consumed at cost. I can’t see one where customers are willing to cough up billions for a slight increase in the knowledge base.
Replying to @Knock_Knock_Lemmy_In@lemmy.world
5 years ago we were mid-pandemic. That’s a big knowledge gap.
Replying to @wewbull@feddit.uk
I’m comparing the whole of human knowledge to 5 years of additional facts. Most useful things are known. An llm doesn’t need to know the current US president to invent a biscuit recipe.