This makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
Which is why things like local LLMs are important.
Stability AI reportedly ran out of cash to pay its cloud GPU bills
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Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#22This makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
There will be an enshittified ad supported tier. You’ll never know when the model is hallucinating and when it’s actively trying to manipulate you. It’ll be great.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#23This makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
There will be an enshittified ad supported tier. You’ll never know when the model is hallucinating and when it’s actively trying to manipulate you. It’ll be great.
The real fun begins when the manipulations are driven by hallucinations.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#24This makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
Which is why things like local LLMs are important.
The good local LLMs are also loss leaders, a company spends a lot of money training a model then gives it away for free in the hopes they can eventually pivot to an actual business model. The work being done with local LLMs seems to take for granted that Mistral and co will just keep shoveling investor money into the furnaces forever to keep the free LLMs coming, and there is no contingency plan for when that money runs out.
Likewise local image generation is almost entirely dependent on the charity of one company, and per the OP that company is on the verge of going broke.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#25This makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
I am not worried about GPT4 like this but GPT6 or GPT7.
On the other hand, I think of how at the individual level if they price me out then they don't have a mass scale product.
I suppose I worry far more about this with Sora too.
I have also spent about $300 on Midjourney in the last 18 months but I don't know how to spend money on Stability.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#26Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#27$11M in revenue on $153M in cloud spend + salaries... Is the AI bubble going to pop hard soon?
I think it will just shift away from relying on cloud providers for the underlying infrastructure.
If the big AI companies go under there could be a lot of cheap second hand H100s on the market.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#28This makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
There will be an enshittified ad supported tier. You’ll never know when the model is hallucinating and when it’s actively trying to manipulate you. It’ll be great.
Thus we'll circle right back to affiliate spam blogs
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#29This makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
I used to think Adobe was in trouble with Stable Diffusion and Midjourney.
Now I realize that Adobe knows how to make money. They'll just add the AI models to Photoshop, Premier, etc and charge an extra $50/month and voila.
However, Stable Diffusion and Midjourney does not have a solid vehicle to making money.
Maybe in the long term, no one will care about using Photoshop anymore. But we're not even close to there yet. AI models seem to make Photoshop even more valuable.
GPT4 is different. OpenAI has made monetization its goal from the start by charging $20/month for GPT4 in ChatGPT and charging loads of money for the API. Also, they have the backing of Microsoft.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#30$11M in revenue on $153M in cloud spend + salaries... Is the AI bubble going to pop hard soon?
>Is the AI bubble going to pop hard soon?
No. I think it's going to get way bigger. When it pops, it will still be bigger than February 2024.
Right now, the companies making money are Microsoft, OpenAI, AI chip makers. Google might join soon if they get their act together. Apple as well.
Basically, only existing large tech companies + OpenAI are making money so far.
However, I expect newer AI-only startups, to start making money in the near future. For example, I can see a company like Devin AI get loads of revenue very quick such as when ChatGPT launched.
As for open source AI companies like Stability, they're in trouble.
Unfortunately, no one has figured out how to make money with open source AI. It used to be that you'd open source your tool, get adoption, then offer a cloud. With open source AI so far, this hasn't come true for whatever reason. Perhaps we're just early.