The leadership of the big AI companies have made some pretty extreme promises on timelines and capabilities. I wonder he’s changing his tune because he’s worried investors will sue him once the man behind the curtain is revealed.
Sam Altman says 'yes,' AI is in a bubble
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Who knows, but one thing that always holds true about Sam Altman is that what he said is not to be trusted. From all the way back to his days at Reddit, he's shown himself to say whatever is necessary to win. His recent comment struck me as strange because if there's one person who is always going to great lengths to pump the bubble up as much as possible, it's Sam Altman.
Re: Sam Altman says 'yes,' AI is in a bubble
#12I don't think companies like Nvidia, OpenAI, Microsoft, Apple, Google, Meta are in a bubble. They're making real profits or they are foundational. Likewise, I don't think S&P500 companies who are adopting LLMs in a big way are in a bubble. I do think startups with multi-billion dollar valuations but mostly relying on OpenAI/Claude are in a bubble. There's no reason a company like Windsurf was worth $3b or Cursor shou…
What happens when LLM companies stop funding their services at a loss? The downstream parts and services will stop seeing revenue. Those people are making a killing off AI since they are so expensive to build and run.
They're already profitable per token in terms of inference.
They're losing money because of R&D and spending capex to buy GPUs.