Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user.
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Exclusive: The high costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
TechCrunch (techcrunch.com)
So what I am learning is that I should start vibe coding even the small scripts that are less than 10 lines.
Done. I will start doing that.
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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.
I was gonna say that, probably the higher the abstraction level the best it is for LLMs to reason about the code, because once learned it’s less tokens.
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If anything, a smaller market share is better for business. The more users they have the faster they lose money.
Nobody asked
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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.
I find that hard to believe right up until the point you mentioned Katy.
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I find that hard to believe right up until the point you mentioned Katy.
If she's good enough for Justin, she's good enough for me.
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Man I cannot fucking wait until this stupid goddamn bubble pops
Im so tired of this stupud fucking refrain. Cause we all know how housing got so mich better after 08 and how we dont have any more dot coms and how the internet got so much better since that bubble. You people have no idea what your even asking for.
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Yes, this is part of the business model. The goal is to get everyone addicted to their service, then jack the price up to profitable margins. It's the same model Netflix and Amazon used. Bothe services lost money for over 10 years before becoming profitable.
YouTube as well.
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Isn't this just the tech industry. Run at a loss. Eat VC money. Wait. Wait.
Some how you become normalized and suddenly important Next thing you know you're raking profit.
Like the guy that has no friends who nobody really likes. He won't go away. He just sticks around. Nobody ever told him to fuck off. So he's just part of the group.
Yep, and they were helped a lot after the 2008 financial crisis when interest rates were dropped super low and loans were cheap. That's a major reason why the market has been screaming for the fed to cut the interest rate as much as possible.
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Im so tired of this stupud fucking refrain. Cause we all know how housing got so mich better after 08 and how we dont have any more dot coms and how the internet got so much better since that bubble. You people have no idea what your even asking for.
I'm gonna be ready this time, I can feel it. THIS will be the crisis from which I emerge on top. I switched to a bidet last year so there's no need to stockpile toilet paper. I've got all my tendies and match ammo in the basement ready to boogaloo, and I've got puts on SPY in the tube for when it starts to look shaky.
No idea where this train is going but I'm full steam ahead and loaded for bear. A cocaine-bear. -
Do any of them like it enough to pay for it? The figures say no.
I use it daily but I won't subscribe. It's like news. Why pay when you can get it for free. (I do subscribe to news outlets, though, but like ai subscriptions, I know I'm in the minority).
There is a specialised ai tool that is useful at my work. It's got a free tier which does most of the functions and the next tier up is crazy expensive on a per user basis for the amount of time it saves. If there was a reasonable subscription, perhaps I'd subscribe but I assume that a reasonable subscription doesn't cover costs, so they'd rather a free user to pump their numbers than lose a subscriber. That yells me it will enshottify over time or they hope that the cost will drop. The problem is that if the cost to host drops a lot, people will self host instead. It's a rock and a hard place, without a sustainable business model.
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Im so tired of this stupud fucking refrain. Cause we all know how housing got so mich better after 08 and how we dont have any more dot coms and how the internet got so much better since that bubble. You people have no idea what your even asking for.
the bubble pops and then everything comes back, in an "improved" version. Imagine: ChatGPT with ads and sponsored answers.
Just like that one black mirror episode.
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This post did not contain any content.
Exclusive: The high costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
TechCrunch (techcrunch.com)
They are in the train the trainer phase where developers are training their models and getting some benefit from the results it spits out.
The enshitification will begin soon. They have already talked about inserting ads in responses.
I fear people will grow attached to AI chats, which will emotionally manipulate them into buying stuff or supporting specific causes. The ads on a platform like this are going to make google AdWords and pay per click feel like advertising in the newspaper.
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This post did not contain any content.
Exclusive: The high costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
TechCrunch (techcrunch.com)
If that's really true, then we should all sign up.
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Im so tired of this stupud fucking refrain. Cause we all know how housing got so mich better after 08 and how we dont have any more dot coms and how the internet got so much better since that bubble. You people have no idea what your even asking for.
The problem is that when a bubble pops and exposes the problem, the government leaders should take the opportunity to fix the problem so it doesn't happen again.
Instead they bail them all out, so there are not only no consequences to their actions, they are literally rewarded with unimaginable wealth. What about this strategy would induce them to change their ways, over doing it all over again, and getting rewarded again?
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This post did not contain any content.
Exclusive: The high costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
TechCrunch (techcrunch.com)
You mean Clippy++ 2.0 auto-complete with jpgs isn't a business model?
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This post did not contain any content.
Exclusive: The high costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
TechCrunch (techcrunch.com)
I was gonna make a sarcastic comment on how surprised I was that a 5$ subscription is not enough for something so heavy that it requires building new nuclear plants.
But holly shit, ChatGPT+ is 23€/months.
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This post did not contain any content.
Exclusive: The high costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
TechCrunch (techcrunch.com)
the day that these guys need to turn a profit will be the day that a lot of people lose access to this sort of thing
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This post did not contain any content.
Exclusive: The high costs and thin margins threatening AI coding startups
Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.
TechCrunch (techcrunch.com)
good, everyone flood the AI with useless tasks so they go bankrupt
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Man I cannot fucking wait until this stupid goddamn bubble pops
And what happens when a bubble bursts? Did the internet die when the dotcom bubble burst, or is that just when it really started to get going?
I share most of your sentiments against AI, but a bubble popping won't make it go away, and it won't even rectify it to be more to people's likings (i doubt it). It takes more than just waiting around to accomplish that.
