[dupe] More discussion: https://news.ycombinator.com/item?id=39868539
Another one of those “what good reason was there for flagging this” moments.
Because Forbes is a clickbait domain.
Stability AI reportedly ran out of cash to pay its cloud GPU bills
31–40 of 44 posts
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#32Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#33This 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 ye…
I’ve attended two local Adobe Create Now events where they demoed their new AI functionality. It’s so well integrated- I’m impressed despite usually disliking them. The key point I got from both events was their emphasis on training exclusively on content they already had licensed through adobe stock so you wouldn’t need to worry about accidentally infringing so much
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#34Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#35Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#36Earlier quoted context omitted.
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.
We’re very far away from H100 firesales. Pretty sure capacity is booked out for years in advance still so even if it is a bubble and pops they’re unlikely to feature on eBay
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#37Earlier quoted context omitted.
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 ye…
I’ve attended two local Adobe Create Now events where they demoed their new AI functionality. It’s so well integrated- I’m impressed despite usually disliking them. The key point I got from both events was their emphasis on training exclusively on content they already had licensed through adobe stock so you wouldn’t need to worry about accidentally infringing so much
Yeah this is my experience as well, gen AI is so well integrated into Photoshop. It's the only software I've used to far where AI integration actually improved the experience. Removing things from pictures used to be a painful process where I'd use the spot heal tool as much as possible then touch up the bad bits manually. Now it's a selection and a sentence, and I have multiple variations I could never have hoped to replicate manually. Same with adding things into photos. Both generating them and blending them in.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#38$11M in revenue on $153M in cloud spend + salaries... Is the AI bubble going to pop hard soon?
Yeah. Looks like the gods demand one last AI winter.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#39This 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 ye…
What evidence do you see indicating that the 20/month is actually profitable? You make the claim, but you have not backed it up.
They could easily be eating a loss on GPT+ and the GPT4 AI. They have billions in runway to do that. I have not seen any reports about their expenses or profitability. Perhaps you can link me to some hard facts.
Until I see real reason to think otherwise, I'll assume there is a reasonable risk of a price hike
Right now they could hike prices, and I'd have nowhere else to go, because nothing else competes with GPT4.
Re: Stability AI reportedly ran out of cash to pay its cloud GPU bills
#40$11M in revenue on $153M in cloud spend + salaries... Is the AI bubble going to pop hard soon?
AI is not a bubble. Anymore than iphone / the internet was a bubble.
Except that they're not talking technology, they're talking economics. It may be significantly to earn a profit on selling an iPhone than selling continued AI access at a reasonable price.