Wait until someone tells them the ratio of public cloud vs self-hosted.
GenAI FOMO has spurred businesses to light nearly $40B on fire
31–40 of 155 posts
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#32Veracity of the article’s numbers is obviously an issue but the thing that’s interesting is that this number isn’t about investment in AI infrastructure or models. It’s money spent on consuming and using the models. Which puts the infra spend in an even starker light. If people don’t feel like they are getting value out of this spend at the peak of hype that’s not a great sign.
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#33Yes and no. Its clear from the article that there is industrial integration. But only workers who are very highly skilled at utilizing the technology--and there are very few of those--are seeing benefits, and only managers who have experience effectively utilizing it are adopting it well. Time will tell, but yes, most projects aren't going anywhere, because they make the fundamental error of thinking that its equivalent to a human in terms of intelligence.
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#34There’s no question we’re in a “GenAI” bubble, the only question is how big of a smoking crater in the ground is going to be created when this thing pops. The tech isn’t going away, and is cool/useful, but from a business standpoint this whole thing looks like a dumpster fire burning next to a gasoline truck. Right now VC FOMO is the only thing stopping all that from blowing up. When that slows down buckle up.
The VCs are the small players in this bubble now. Big traditional finance is helping Microsoft, Google, Meta, and Amazon build out their datacenters, and the infrastructure to power them. VCs have a lot of money compared to your startup, but they can’t finance a trillion dollars in construction projects. They’re all so highly levered up that they can’t afford for the bubble to pop. If this goes on for another couple…
I don't think Microsoft has a lot of corporate debt relative to its profits etc., and Google has even less.
I'm sure there will be losers, but I'm not quite sure who.
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#35Earlier quoted context omitted.
Truly, except now everyone's online and spending time online and spending cash online.
And, the .com bomb killed some companies and slowed down spending for a bit. It did not kill the internet, and now companies like Amazon(.com) are absolutely enormous. Some people think the GenAI bomb is going to kill GenAI, I think it's just going to weed out those with too high of expenses and no way to evolve the compute to be cheaper over time.
"Some people think the GenAI bomb is going to kill GenAI,"
Sure, a very very small percentage of people who know hardly anything about GenAI might think this.
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#36Article doesn't understand that cutting "between five and 20 percent of support and admin processing" is really valuable, instead it seems to want to dismiss that as a dull failure. Business process outsourcing companies are valued at $300bn according to the BPO Wikipedia page. So 5%-20% of that is 15-60bn. So even if we're valuing all the other GenAI impact at zero the impact on admin and support alone could plausib…
I suppose my question that I’m too tired to napkin math on is if those benefits justify the sometimes astronomical cost of the tooling or integration
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#37Article doesn't understand that cutting "between five and 20 percent of support and admin processing" is really valuable, instead it seems to want to dismiss that as a dull failure. Business process outsourcing companies are valued at $300bn according to the BPO Wikipedia page. So 5%-20% of that is 15-60bn. So even if we're valuing all the other GenAI impact at zero the impact on admin and support alone could plausib…
I suppose my question that I’m too tired to napkin math on is if those benefits justify the sometimes astronomical cost of the tooling or integration
Or the reputational risk.
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#38Article doesn't understand that cutting "between five and 20 percent of support and admin processing" is really valuable, instead it seems to want to dismiss that as a dull failure. Business process outsourcing companies are valued at $300bn according to the BPO Wikipedia page. So 5%-20% of that is 15-60bn. So even if we're valuing all the other GenAI impact at zero the impact on admin and support alone could plausib…
But that's only the company side and not the customer side.
Klarna also cut costs replacing support with AI. Didn't work well so ha to rehire.
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#39It's 1999 again.
It'll be interesting to see what sort of Chewy-equivalents emerge after the pets.com-analogues collapse.
Re: GenAI FOMO has spurred businesses to light nearly $40B on fire
#40Article doesn't understand that cutting "between five and 20 percent of support and admin processing" is really valuable, instead it seems to want to dismiss that as a dull failure. Business process outsourcing companies are valued at $300bn according to the BPO Wikipedia page. So 5%-20% of that is 15-60bn. So even if we're valuing all the other GenAI impact at zero the impact on admin and support alone could plausib…
I suppose my question that I’m too tired to napkin math on is if those benefits justify the sometimes astronomical cost of the tooling or integration
It can't be napkin mathed anyways.