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Varyk@sh.itjust.works to Ask Lemmy@lemmy.world · 16 hours ago

What will all the computing infrastructure be used for when companies admit commercial AI isn't cost-effective?

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What will all the computing infrastructure be used for when companies admit commercial AI isn't cost-effective?

Varyk@sh.itjust.works to Ask Lemmy@lemmy.world · 16 hours ago
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  • Perspectivist@feddit.uk
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    3 hours ago

    They’re losing money mostly because of massive investments in new datacenters and GPUs. Not because people are not willing to pay for using it.

    • Varyk@sh.itjust.worksOP
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      Nope, you’ll certainly need a source to back that speculation up.

      Half a billion people are “using” AI and the total llm market cap is a few billion. On average, users may be willing to pay up to 50 cents a month for inaccurate word association.

      Not even a drop in the buckets companies need to fill up with everything they’re spending just on advertising, not to mention infrastructure, utility and upgrade costs.

      People are statistically not willing to sustainably pay for llms, even if we assumed the rosy predictions of 20x LLM market caps in a decade.

      Devil’s advocate: Increased AI cash flow could occur if people don’t realize their ai “search results” are paid advertisements, and considering longstanding obliviousness to directed advertising and the recent abolishment of US consumer rights…it could happen.

      • Perspectivist@feddit.uk
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        2 hours ago

        “Nope” implies you already have a source proving me wrong.

        • Varyk@sh.itjust.worksOP
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          2 hours ago

          Yes; the included source and explanatory paragraph above in the same comment you are referencing.

          Would you care to provide any evidence for your speculation that people are willing to pay enough for AI to sustain its costs?

          • Perspectivist@feddit.uk
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            2 hours ago

            Would you care to provide any evidence for your speculation that people are willing to pay enough for AI to sustain its costs?

            ChatGPT alone has 800 million weekly users and their total revenue in 2025 was 13 billion with 70% coming from normal users. That’s drop in the bucket though considering they’ve commited to investing a trillion dollars into new computing capacity over the next 10 years.

            • Varyk@sh.itjust.worksOP
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              2 hours ago

              This is why you should provide a source, your numbers and associated assumptions are incorrect:

              Chatgpt has estimated revenue of 1.3 billion, not 13 billion, neither of which are remotely significant as revenue streams relative to cost.

              That’s the thrust of my opening paragraph, and then you appear to have taken up my drop in the bucket analogy, so i guess we’re on the same page now.

              • Perspectivist@feddit.uk
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                2 hours ago

                Would be a lot quicker and easier if you just googled it yourself.

                OpenAI’s annualized revenue hits $10 billion, up from $5.5 billion in December 2024

                OpenAI hits $12 billion in annualized revenue, The Information reports

                OpenAI (MSFT) Revenue Doubles to $10 Billion as AI Adoption Accelerates

                OpenAI revenue doubles to $12 bn, clocks in 700 mn weekly ChatGPT users

                OpenAI hits $12 Billion annualized revenue with 700M weekly users

                OpenAI generates $4.3 billion in revenue in first half of 2025, the Information reports

                OpenAI has five years to turn $13 billion into $1 trillion

                OpenAI hits $10 billion in annual recurring revenue fueled by ChatGPT growth

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