Complete bs.
How the AI Bubble Bursts
71–80 of 557 posts
Re: How the AI Bubble Bursts
#72This article tries to build upon a lot of half-truths or incorrect facts, like this: > OpenAI is struggling to monetize. They turned to showing ads in ChatGPT, The ads aren’t going into your paid plans (except maybe a highly discounted tier, depending on the market). The ads are a play to offer a free version. Having an ad-supported free tier isn’t new. The discussion about being unprofitable also repeats the reducti…
> We have very strong indicators that inference is not a money loser for these companies and is likely very profitable.
Why is OpenAI specifically losing money hand over fist then?
Re: How the AI Bubble Bursts
#73> OpenAI is struggling to monetize. They turned to showing ads in ChatGPT, something Sam Altman once called a “last resort”, while Anthropic is crushing them with the more profitable corporate customers and software engineers. Their shopping feature flopped and they shut down Sora, both supposed to be revenue drivers. I don't think Sora ever thought of as a "revenue driver" considering how notoriously expensive and u…
> minus the scandals
Given the tech bros involved, we just don't know about them yet. Also was this comment generated using AI? Look at all the em dashes.
Re: How the AI Bubble Bursts
#74It’s incredible how polarizing the AI rush is. I keep the perspective that the technology is an absolute step change but I have no idea where the cards will fall. I take a lot of issue with these style of articles. I get a sense that the authors are being overly defensive. The cost to serve tokens is absolutely profitable today and that’s been true for at least a year. What’s unclear is how R&D and capex fit into the…
The article is just helpfully illustrating how artisanal you can make your slop if you really try!
Re: How the AI Bubble Bursts
#75It's a winner-takes-all market and everyone wants to be the next Google and not the next Lycos or AskJeeves etc. It'd be interesting to see what they spend all the money on though as we seem to be hitting diminishing returns and I'm not sure if the typical enterprise user really cares about small improvements on benchmarks. It seems like it'd probably be better to spend all that on marketing, free trials, exclusivity…
I don't think it's winner-takes-all. Google is Google in 2026 because Lycos and AskJeeves were bad in comparison. The average user doesn't care whose LLM they're using because they're all close enough. It's hard to see past the bubble bursting, but I expect most people will use multiple of them depending on context (Copilot via the integration in windows, Gemini via Siri on their phone, etc), likely without paying.
Re: How the AI Bubble Bursts
#76This article tries to build upon a lot of half-truths or incorrect facts, like this: > OpenAI is struggling to monetize. They turned to showing ads in ChatGPT, The ads aren’t going into your paid plans (except maybe a highly discounted tier, depending on the market). The ads are a play to offer a free version. Having an ad-supported free tier isn’t new. The discussion about being unprofitable also repeats the reducti…
> We have very strong indicators that inference is not a money loser for these companies and is likely very profitable. Why is OpenAI specifically losing money hand over fist then?
Training. But training costs are a smaller and smaller percentage of revenue as inference revenue grows faster than training costs.
Re: How the AI Bubble Bursts
#77It sounds like most of the data centers promised in 2025 and 2026 are not even built yet and most of the GPUs bought haven't even been installed.
If it does all go down in flames, even floor value is not going to be that valuable.
I can't predict the future but it's smelling a lot like a recession already under way that is bigger than the sub-prime crash.
Re: How the AI Bubble Bursts
#78> RAM prices are crashing because new models won’t need as much Reality begs to differ [0] and following the link for that text goes to an article [1] where they talk about Google's TurboQuant which supposedly will lower the RAM requirements. Now if that means RAM prices come down (as speculated, not reported on, in the link) or the AI companies just do more things with their extra ram is yet to be determined. The fa…
If the gains are real why the limits are so bad? Google can barely serve Anti-gravity.
Re: How the AI Bubble Bursts
#79This article tries to build upon a lot of half-truths or incorrect facts, like this: > OpenAI is struggling to monetize. They turned to showing ads in ChatGPT, The ads aren’t going into your paid plans (except maybe a highly discounted tier, depending on the market). The ads are a play to offer a free version. Having an ad-supported free tier isn’t new. The discussion about being unprofitable also repeats the reducti…
> The ads aren’t going into your paid plans (except maybe a highly discounted tier, depending on the market). The ads are a play to offer a free version. Having an ad-supported free tier isn’t new.
Sounds like it is new for ChatGPT though. That's also how it started with TV and Youtube, first on the free tier then expanding to the paid ones.
Re: How the AI Bubble Bursts
#80It’s incredible how polarizing the AI rush is. I keep the perspective that the technology is an absolute step change but I have no idea where the cards will fall. I take a lot of issue with these style of articles. I get a sense that the authors are being overly defensive. The cost to serve tokens is absolutely profitable today and that’s been true for at least a year. What’s unclear is how R&D and capex fit into the…
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