Assuming your assessment of AI utility is correct for sake of discussion, it would not mean it is guaranteed to be profitable for any given company with any given strategy and spending.
Internet shopping and delivery is hugely profitable, but that’s of little comfort to pets.com and webvan.
If a company more responsibly managed their spend and commitments and still reached the same utility as Anthropic, then Anthropic would never see profitability.
It will definitely be profitable for the hardware makers. Companies whose entire value proposition depends on the model weights not leaking in an increasingly sloppy vulnerability-filled world of IT? Not so much.
In the long run you’d imagine that GPUs will become more affordable once these massive datacenters have been built. At that point it becomes far more profitable to run your own hardware. Especially if these AI companies need to increase their subscription prices by x10 to finance all this debt they’ve taken on.
Yeah AI is here to stay but these “founder” companies sure aren’t.
Don’t worry, they are already talking loudly about how much more “dangerous” those on-premise models are and suggesting that regulation is needed to make sure people only rent it from trusted facilities that can manage it.
Impossible to imagine anything so extremely useful as AI not being profitable in the long run. No sarcasm.
Assuming your assessment of AI utility is correct for sake of discussion, it would not mean it is guaranteed to be profitable for any given company with any given strategy and spending.
Internet shopping and delivery is hugely profitable, but that’s of little comfort to pets.com and webvan.
If a company more responsibly managed their spend and commitments and still reached the same utility as Anthropic, then Anthropic would never see profitability.
It will definitely be profitable for the hardware makers. Companies whose entire value proposition depends on the model weights not leaking in an increasingly sloppy vulnerability-filled world of IT? Not so much.
In the long run you’d imagine that GPUs will become more affordable once these massive datacenters have been built. At that point it becomes far more profitable to run your own hardware. Especially if these AI companies need to increase their subscription prices by x10 to finance all this debt they’ve taken on.
Yeah AI is here to stay but these “founder” companies sure aren’t.
Don’t worry, they are already talking loudly about how much more “dangerous” those on-premise models are and suggesting that regulation is needed to make sure people only rent it from trusted facilities that can manage it.
They are certainly trying to kill local models and personal computing. I just don’t think it’s possible.
Public libraries are also very useful. Doesn’t mean they have to make money.
Bookstores, publishers, writers, etc etc are also very useful and profitable even with the existence of public libraries.