Spoiler: no
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They barely have launched anything and they are already enshitifying their offerings. I think this says what everyone is thinking. No, they are nowhere near profitable and large scale deployment may not be profitable for a long time.
It took AWS nine years to become profitable. It appears that AI may take a decade or more. How they plan on surviving when they are already taking away features and putting hard limits on usage is anybody’s guess.
AWS wasn’t profitable because they were reiinvesting all their revenue back into growing the service. If they chose to stop growing, they could have been profitable at any point.
AI as an industry is actively, violently unprofitable. They can’t even afford to keep the lights on without torching investor money. The more they grow, the faster they lose money.
Not just that… I’m suspicious that some of them are already implementing inference inefficiencies because they profit more from inference. So if you can make someone’s question consume more tokens, you earn more income per query.
Edit: found example conversation here https://github.com/openai/codex/issues/14593#issuecomment-4523777147
I really thought today would be the day guys
I guess I just need to invest more into AI. What if we took the funding for hospitals and converted them into diesel generators to power more chips bought for well above cost?
Can we feed small children into the diesel generators?
with
block chainAI all things are possibleI think that would cannibalize labour from the coal mines.
We could do the elderly though.
For hardware manufacturers like Nvidia: Massively.
They’re the ones selling shovels during the gold rush
