Comment by LetsGetTechnicl
9 hours ago
If it's profitable, why haven't they reported any profits? People like Ed Zitron have done the math and it just doesn't add up. I mean he just published this piece today: https://www.wheresyoured.at/ai-is-too-expensive/
Amazon was unprofitable for over a decade, and they were public. Theres no incentive to be profitable as a private company if you can continue to raise money.
Ed Zitron and Gary Marcus are... confused.
> Amazon was unprofitable for over a decade, and they were public.
Amazon was unprofitable because they poured their revenue into growth. On paper, they were in the red, but everyone - especially investors - saw what was going to happen, given their trajectory.
Is it the case that any of these AI companies are actually making a ton of money and growing accordingly? AFAICT, we've just got [a] big players like Google that can subsidize AI in the hopes of waiting everyone else out and [b] private companies raising capital in the hopes that when the market returns to rationality, they may be solvent.
Yes that is exactly what is happening. OpenAI and Anthropic are the fastest growing companies by revenue ever and their gross profit margins are healthy.
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But I've been told here -- over and over again -- that the cost of inference was going to go down as the technology matured.
The trend lines are going in the opposite direction.
His entire brand is that the AI bubble will burst. By his account it was supposed to have several times by now. Like the doomers, it's not if it's when and they have to keep pushing back their predictions. Funny how both camps can be so confident. Alas, that's how they get eyes, ears and dollars.
That's not to say they will be or are wrong, it's just that they aren't exactly unbiased, or humble, sources.