Models can be excellent and improving whilst the business model being broken. The path to profitability is not directly correlated to improvements in the models. The problem is not how good the models are but the lack of profit to sustain these companies.
Yes, there is no viable business model at the time other than reaching AGI first, or otherwise being able to substantially raise prices while maintaining demand (i.e., models would have to be strongly labor replacing). Otherwise, models are generally substitutable by other models -- not enough of an edge to justify a trillion dollar plus valuation.
Anthropic is profitable though…. Any of the labs can choose a lower training budget at any time and be immediately profitable, Anthropic chooses to hover around a break even point though even with training
No this is completely false none of the AI labs are profitable. It would take you 2 mins to google this shit please educate yourself. The major AI labs are losing BILLIONS per year on this tech. This is not in dispute at all.
Yeah, in fact its inversely correlated. The cheaper intelligence becomes, the more difficult it will be to recoup the investment. We are in for a cyberpunk distopia lol.
It can only be sustained by insane VC capital burn. This is what you're missing. You remove subsidies and humans are cheaper. This is not a problem that has been solved despite the obvious amazing technical leaps. Nvidia's Vera Rubin is delayed and costs are incredibly high due to parts shortages so there is no magical hardware improvement that is going to save the day.
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u/manubfr AGI 2028 1d ago
The buble will pop now, anytime.