Venture capitalism is what it's called, I think

Damn. We're looking at another recession when this bubble bursts, aren't we?

Just great.

I mean, I agree that a lot of money was spent training some of these models - and I personally wouldn't invest in an ai based company. The economics dont make sense.

However, worst case, self hosted open source models have got pretty good, and I find it unlikely that progress will simply stop. Diminishing returns from scaling data yes, but there will still be optimizations all through the pipeline.

That is to say, LLMs will continue to have utility regardless if Open AI and Anthropic are around long term.

In other words, they want to hook up users and companies, make them dependent, and then rise up the prices severely while finding ways to process and incorporate all of the data they've gathered in ways that will probably involve automating the jobs of the users themselves.

The usual business plan is to reinvest all earnings into growth. So you're losing money, but gaining market share. Tesla, Amazon, etc all did this. They could stop at any point and turn a profit, but they chose to pursue a growth instead.

AI companies are currently not making enough revenue to even cover their operating costs. Even so, they are pouring all of their money into more video cards that, once installed and configured, immediately start losing money.

I don't think they're gaining any market share, especially after the Chinese produced nearly identical services.

Man I cannot fucking wait until this stupid goddamn bubble pops

in this case there isnt customer base for AI, only ceo and c-suites are.

So much of the AI stuff we see today are boards reacting and worrying about being "left behind" in AI. In many cases, the goal is not to deliver value. The goal is to be able to attach a little sticker that says "AI" to their products to excite the shareholders.

Unfortunately in this case, some of the largest companies in the world haven't been able to figure out how to run AI services at a profit.

This could change any day if some more efficient hardware arrives, but until then, most of the software world is just crossing their fingers it becomes profitable one day while they light dollar bills on fire in their datacenters.

If this isn't "bubbleish" behavior I don't know what is.

I'd suspect the low "density" of context makes it prone to hallucinations. You need to load in 3000 lines to express what Python does in 3, so there's a lot of chances to guess the next token wtong.

If anything, a smaller market share is better for business. The more users they have the faster they lose money.

Me too. I can then go back to 3D printing quantum blockchains out of room temperature superconductors in my private space station with Katy Perry.