When potatoes came over from the New World, a lot of Europeans grew them as decorative plants. New shit makes people do weird stuff.
Not everybody is trying to make a business with so-called AI. The peddlers are just the loudest.
The companies promise their models can do all this stuff for paying customers. If the models were truly that capable, the so-called AI companies ought to be doing everything with them and be raking in the dough like mad. Which they’re not because they know the limitations of the models. It’s what economists call the bullshit gap between marketing and reality. And by economists I mean me.
I mean if you were an economist you’d know exactly why AI companies are making massive profits, because its more profitable to sell shovels during the gold rush than it is to find gold. Doesn’t mean gold is worthless and not profitable, it’s pretty basic economics, but you know that already.
I mean if you were an economist you’d know exactly why AI companies are making massive profits
They are literally not making massive profits. They may be making lyin’ Sam Altman rich, but the VC money is drying up and OpenAI has repayments coming up in 2027 that it doesn’t have a chance in hell of being able to payback.
You aren’t separating hardware/training costs and costs when the models are developed. Ask the Chinese how thats working out for them, and one of many reasons why their models are so much cheaper.
Yeah, but they aren’t an “AI company”. They are a hardware company that is propping up AI companies to keep them buying (and warehousing) GPUs via circular financing.
When potatoes came over from the New World, a lot of Europeans grew them as decorative plants. New shit makes people do weird stuff.
Not everybody is trying to make a business with so-called AI. The peddlers are just the loudest.
The companies promise their models can do all this stuff for paying customers. If the models were truly that capable, the so-called AI companies ought to be doing everything with them and be raking in the dough like mad. Which they’re not because they know the limitations of the models. It’s what economists call the bullshit gap between marketing and reality. And by economists I mean me.
I like your newly coined term: “marketing bullshit gap”. I will start using it.
A agree with your point of view fully.
I mean if you were an economist you’d know exactly why AI companies are making massive profits, because its more profitable to sell shovels during the gold rush than it is to find gold. Doesn’t mean gold is worthless and not profitable, it’s pretty basic economics, but you know that already.
They are literally not making massive profits. They may be making lyin’ Sam Altman rich, but the VC money is drying up and OpenAI has repayments coming up in 2027 that it doesn’t have a chance in hell of being able to payback.
https://www.wheresyoured.at/brokenomics/
You aren’t separating hardware/training costs and costs when the models are developed. Ask the Chinese how thats working out for them, and one of many reasons why their models are so much cheaper.
Well, hardware companies (Nvidia) are making massive profits. The rest, no.
Yeah, but they aren’t an “AI company”. They are a hardware company that is propping up AI companies to keep them buying (and warehousing) GPUs via circular financing.
https://isaiprofitable.com/
I think the person “selling shovels during a gold rush” is nvidia slingin GPUs. And also in this analogy the gold is pyrite.