• NekoKoneko@lemmy.worldEnglish
      47·
      14 hours ago

      I made this comment elsewhere, but this also severely underplays how unprofitable AI is by counting hardware suppliers’ revenue as “profit.” AI profitability means to most people what AI itself generates, and counting the spend for buildout as “profit” is doubly wrong.

      Nvidia, Micron, AMD and others are selling shovels and mules in an irrational gold rush. A prospector can’t point to the money the prospector paid for shovels and a mule to claim prospecting is profitable.

      • OrganicMustard@lemmy.worldEnglish
        3·
        10 hours ago

        Also it is not counting the AI debt the companies have been hiding off the balance. Some months ago it was reported a 420 billion gap of hidden debt just for Meta and a 3 trillion gap for the whole industry.

      • tburkhol@lemmy.worldEnglish
        10·
        13 hours ago

        And no small part of that revenue is money that Nvidia and Micron “invested” in the companies paying them.

    • danc4498@lemmy.worldEnglish
      1·
      14 hours ago

      1t net loss isn’t as bad as I was expecting. 12 months from now might be interesting

  • TheReturnOfPEB@reddthat.comEnglish
    4·
    10 hours ago

    Watch the bond market, then. And the interest rate. You will have a few weeks heads up knowing that small and medium sized AI-only companies are about to get puckered in 2027.

    Big companies with investments including AI but have outside revenue will probably continue development because:

    big companies gonna AI until it is.

    Ugh. And with that diatribe I now know I need to change my YouTube algorithm.

  • bridgeenjoyer@sh.itjust.worksEnglish
    7·
    13 hours ago

    No no guys this is the same as electricity and the internet. Its inevitable and is definitely really good and youre all old men yelling at cloud going to be left behind.

    Trust us, give me money.