• circuitfarmer
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    2 days ago

    Because LLMs don’t make money. They are prohibitively expensive to run at scale due to the compute and energy requirements, and model fine-tuning adds yet more cost. RAG systems are even more prohibitive and complex.

    The only reason they have been developed to such extent is investor money rolling around in a giant loop. Once this stops, every company hosting LLMs has to raise prices to try and make the unprofitable profitable – but the compute and energy costs don’t change in a significant way (unless it’s up).

    Ads here are likely an attempt to recoup what is dwindling investor capital. I seriously doubt any of these giant models can be brought to actual profitability.

    Eventually, the bottom just falls out.