We’ve known for years that the chatbot vendors run at a massive loss. OpenAI was spending $2.35 for each $1 of revenue in 2024, and it’s only got worse since then. Anthropic keeps pushing its price…
  • ignirtoq@feddit.onlineEnglish
    29·
    3 days ago

    This combined with the OpenAI and Anthropic price increases mean I have hope the bubble will pop by the end of the year. Microsoft has to report their stats as a publicly traded company, and both Anthropic and OpenAI are aiming for IPOs in H2, so they will have to disclose stats for that as well. When all of their “customers” go up in smoke once the real price tag hits, they won’t be able to hide it.

    AI in its present form is just too expensive without venture capital footing 90+% of the bill. They burned through that too quickly. They didn’t get the traditional economy addicted to AI enough; most companies can unwind most of the changes they have made to roll AI into their operations.

    Edit: GitLab might be screwed, though.

    • Jiral@lemmy.orgEnglish
      6·
      3 days ago

      I doubt either openAI or anthropic will go public for precisely that reason. They cannot afford the required transparency. Microsoft will be interesting though. It gets increasingly hard to hide the blood bath using the rest of their business.

      • David Gerard@awful.systemsOPMEnglish
        2·
        2 days ago

        yeah, the drive to an IPO is purely escape hatch. they did one thing right in that being money bonfires is part of their well-known charm. But this much of a money bonfire, well.

  • Anisette [any/all]@awful.systemsEnglish
    16·
    3 days ago

    this has been the funniest bit. All the AI bros suddenly going “nooo I thought it would be subsidised forever why is it expensive now” as if this wasn’t the expected outcome from the start

  • Deestan@lemmy.worldEnglish
    4·
    3 days ago

    Here’s hoping it dispells some of the bullshit shielding other AI vendors from scrutiny over their spending.