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
Are you willing to pay 10x what you pay right now
They lost $20B on $50B revenue. That means they only need to double the price to make up the loss and have a profit.
Replying to @Blue_Morpho@lemmy.world
They’re playing all kinds of games with the numbers right now. They’re trying to IPO so hiding costs under other headings outside the core business. Don’t trust what they openly state. It’s far worse.
Replying to @wewbull@feddit.uk
Maybe but you have to work with the data you have, not the data you want to see.
Imagining that the enemy is on the brink of collapse isn’t a good mind set when you are fighting something. It encourages laziness.
Replying to @Blue_Morpho@lemmy.world
The data is there, but it’s not in what those companies say. It’s in the books of the companies they have relationships with.
I do agree with your second statement though.
Replying to @wewbull@feddit.uk
The data is there, but it’s not in what those companies say.
You can’t argue from the premise of conspiracy. Are they exaggerating? Maybe? But you absolutely cannot state with confidence that you know a huge secret hidden from all Wall Street analysts.
$20B loss on $50B revenue are the numbers that Wall Street thinks is correct. That’s the data you have to go off of without unsupported conspiracies.