They barely have launched anything and they are already enshitifying their offerings. I think this says what everyone is thinking. No, they are nowhere near profitable and large scale deployment may not be profitable for a long time.
It took AWS nine years to become profitable. It appears that AI may take a decade or more. How they plan on surviving when they are already taking away features and putting hard limits on usage is anybody’s guess.
AWS wasn’t profitable because they were reiinvesting all their revenue back into growing the service. If they chose to stop growing, they could have been profitable at any point.
AI as an industry is actively, violently unprofitable. They can’t even afford to keep the lights on without torching investor money. The more they grow, the faster they lose money.
Not just that… I’m suspicious that some of them are already implementing inference inefficiencies because they profit more from inference. So if you can make someone’s question consume more tokens, you earn more income per query.
They barely have launched anything and they are already enshitifying their offerings. I think this says what everyone is thinking. No, they are nowhere near profitable and large scale deployment may not be profitable for a long time.
It took AWS nine years to become profitable. It appears that AI may take a decade or more. How they plan on surviving when they are already taking away features and putting hard limits on usage is anybody’s guess.
AWS wasn’t profitable because they were reiinvesting all their revenue back into growing the service. If they chose to stop growing, they could have been profitable at any point.
AI as an industry is actively, violently unprofitable. They can’t even afford to keep the lights on without torching investor money. The more they grow, the faster they lose money.
Not just that… I’m suspicious that some of them are already implementing inference inefficiencies because they profit more from inference. So if you can make someone’s question consume more tokens, you earn more income per query.
Edit: found example conversation here https://github.com/openai/codex/issues/14593#issuecomment-4523777147