Random Thoughts.....What Are You Thinking?

The profit comes when you're so addicted you will pay whatever to continue using it and they increase the cost to use. Alternatively, they contract with governments to forward all the personal information you're voluntarily feeding into these models to them. Sora cost an astronomical amount because of the amount of compute required to make a video feel smooth, the other models aren't quite so dire.

As much as I'd love to see all these companies crash and burn, I don't really expect that to be the case. OpenAI and Anthropic are both investing big in building their own datacenters so they don't have to pay for IAAS, which will save them significant amounts on operating costs. During this time, the marginal losses are just deductions for the company anyway and they continue to build addiction. Once they have enough people hooked to change the pricing model, they'll be profitable pretty quickly.

That profit's going to come at the expense of driving up consumer hardware and electricity substantially, because they're already making deals with ***localities to buy cheap power and buying out hardware producers' stock for years in advance. It's going to suck for everyone. But, I don't think they go under anytime soon.

OpenAI is so far removed from being a "startup" it's in a different universe.

Like a lot of things in tech, it's a solution looking for a problem. Some problems *are* suited to the machine learning tools we call AI. General applications like "make this better" are not suited to it otoh.

The publically available AI platforms are in fact crowd sourcing training the AI to humans, which is then used to train new not publicly available AIs. There are even paid jobs for this if you are an expert in a field.

The zeros are all injected by venture capital. Not one of those zeros is earned.

But there is no profit, its all burn rate. And their customers are used to a HIGHLY subsidized and totally unreal subscription rate.

Optimistic. The costs of AI services are 10 to 30!!! times the revenues. When reality hits the success rate won't be 2%, it will not even be 0.02%.

What AI needs to become profitable is something like a 1000% increase in throughput with 90% reduction in resource usage.

Guys, Im just passing by to declare Im not handsome, Im not strong, and not a genius.

Eh, april 1st, you fools!

April fools ends at noon
Anything attempted after noon makes you the fool

Let it be known that Panta is not handsome, is not strong, and is not a genius.

Maybe you need to relax a bit

Here is a good video so you can take easy and stop being that grumpy.

People who've been using it to do their work for 2-3 years aren't going to suddenly go back to doing it the old way, though. Once the habit has been sufficiently established, they can pull the rug and charge profitable rates. There's plenty of data showing that once people become reliant on it, their own ability to produce useful work declines substantially. White collar workers are the perfect market; they can afford to spend quite a bit if not doing so would harm their day to day experience substantially or endanger their role.

Building out their own datacenters gives economies of scale (and power at the expense of the public), so the companies can cut costs substantially in the meantime.

Would you prefer if I called it vertical integration or purchasing economies? If you have a contrary view, it might be more productive to explain it.

Seems patently obvious to me that owning their own hardware and getting power directly from a plant with an off-grid deal is going to be substantially cheaper than renting datacenter space.

It should be* but those turbines are a way to get power that bypasses limitations on available grid power. That isn't economies of scale.

xAI built an illegal power plant to power its data center



Economies of scale is getting a discount for buying all those turbines at once.

*I live with some of the cheapest electricity in the nation. NFW are gas turbine power plants cheaper than here. We had to pass special rates to discourage bitcoin mining.

They are probably cheaper than Con Edison or Florida power and light.

Man, wtf was that episode of Invincible. Traumatised.

Guys I have a confession to make. I like men.

Disembowlment, gross, sure, but naw. Rey being eaten was traumatic. Vore weirds me the *** out.

Sometimes I like rewatching Cumtown bits.

That didn't bother me. This guy.. I may never eat sausage again.


Shocking.

Stahp, sis. You're dehydrated.

inb4: thats homophobic

no, it goes both ways

You asked for this, not my fault.

Find a church, leave those impure thoughts behind.

What an ugly, weak, stupid looking dog

thats cynophobic

Ill add it to the list of all the -phobics and -ists I already am

It's ok Nyn. I'll take you as you are.

Damn. This Good Luck Have Fun Dont Die movie is kinda awesome. Like a funny terminator.

Never saw anyone talk about it, review it or even mention it. Just completely under the radar.

Vindication!!!

One of the laziest posts

But yummy!