Maybe because we’re all getting really tired of industry propaganda designed to sell us on the “inevitability” of genAI when anyone who’s paying even a little attention can see that the only thing inevitable about this current genAI fad is it crashing and burning.
(Even when content like this comes from a place of sincere interest, it becomes functionally indistinguishable from the industry propaganda, because the primary goal of the propagandists is to keep genAI in the public conversation, thus convincing their investors that its still the hottest thing around, and that they should keep shoveling money into it so that they don’t miss the boat).
OpenAI, the company behind that giant bubble in the middle there, loses two dollars and thirty five cents for every dollar of revenue. Not profit. Revenue. Every interaction with ChatGPT costs them a ridiculous amount of money, and the percentage of users willing to actually pay for those interactions is unbelievably small. Their enterprise sales are even smaller. They are burning money at an absolutely staggering pace, and that’s with the deeply discounted rate they currently get on their compute costs.
No one has proposed anything that will lower their backend costs to the point where this model is profitable, and even doubling prices (which is their current plan) will not make them profitable either. Literally not one person at OpenAI has put forth a concrete plan for the company to reach profitability. And that’s the biggest player in the game. If the most successful genAI company on the planet can’t figure out a way to actually make profit off this thing, it’s dead. Not just OpenAI; the whole idea.
The numbers don’t lie; users, at best, find it moderately interesting and fun to play around with for a while. Barely anyone wants this, and absolutely nobody needs it. Not one single genAI product has created a meaningful use-case that would justify the staggering cost of building and running a transformer based model. The entire industry is just a party trick that’s massively overstayed it’s welcome.
Maybe because we’re all getting really tired of industry propaganda designed to sell us on the “inevitability” of genAI when anyone who’s paying even a little attention can see that the only thing inevitable about this current genAI fad is it crashing and burning.
(Even when content like this comes from a place of sincere interest, it becomes functionally indistinguishable from the industry propaganda, because the primary goal of the propagandists is to keep genAI in the public conversation, thus convincing their investors that its still the hottest thing around, and that they should keep shoveling money into it so that they don’t miss the boat).
OpenAI, the company behind that giant bubble in the middle there, loses two dollars and thirty five cents for every dollar of revenue. Not profit. Revenue. Every interaction with ChatGPT costs them a ridiculous amount of money, and the percentage of users willing to actually pay for those interactions is unbelievably small. Their enterprise sales are even smaller. They are burning money at an absolutely staggering pace, and that’s with the deeply discounted rate they currently get on their compute costs.
No one has proposed anything that will lower their backend costs to the point where this model is profitable, and even doubling prices (which is their current plan) will not make them profitable either. Literally not one person at OpenAI has put forth a concrete plan for the company to reach profitability. And that’s the biggest player in the game. If the most successful genAI company on the planet can’t figure out a way to actually make profit off this thing, it’s dead. Not just OpenAI; the whole idea.
The numbers don’t lie; users, at best, find it moderately interesting and fun to play around with for a while. Barely anyone wants this, and absolutely nobody needs it. Not one single genAI product has created a meaningful use-case that would justify the staggering cost of building and running a transformer based model. The entire industry is just a party trick that’s massively overstayed it’s welcome.