While the technology likely won’t go away, some of the companies behind the AI push take huge losses and may collapse. OpenAI, Oracle, Microsoft and the bunch are spending insane amounts of money on datacenter buildout that may never return a profit.
Most AI subscriptions for instance are priced under cost to lock users in. However, unlike traditional services, it’s trivial for a user to migrate to a competitor or (eventually) run a local model.
Currently that market doesn’t return a profit and it’s questionable if it ever will
Increasingly, this looks like a death spiral of tech giants where nobody can admit to the sunk cost fallacy.
Unfortunately these companies are in everybody’s investment or retirement funds, so when they crash the economy will crash with it. I think that would be the “AI failing”. Not the technical aspect, but rather the economical aspect.
While the technology likely won’t go away, some of the companies behind the AI push take huge losses and may collapse. OpenAI, Oracle, Microsoft and the bunch are spending insane amounts of money on datacenter buildout that may never return a profit.
Most AI subscriptions for instance are priced under cost to lock users in. However, unlike traditional services, it’s trivial for a user to migrate to a competitor or (eventually) run a local model. Currently that market doesn’t return a profit and it’s questionable if it ever will
Increasingly, this looks like a death spiral of tech giants where nobody can admit to the sunk cost fallacy. Unfortunately these companies are in everybody’s investment or retirement funds, so when they crash the economy will crash with it. I think that would be the “AI failing”. Not the technical aspect, but rather the economical aspect.