Yes it will. None of the current AI companies are profitable, have never been profitable and most likely will never be profitable. Their business model simply isn’t economically sustainable. What is being invested in AI is basically imaginary money in a circle-jerk of companies like Nvidia, Anthropic, OpenAI and others. This artificially bloats their value and there is zero chance in hell that the AI bubble will not burst like nothing ever has before.
This is not to say that LLMs and other fancy jargon generators cannot be useful. They absolutely can. What will probably happen is that people will realize that they are just fancy guessing machines without real understanding behind and learn to use them in that way. I hope at least.
Isn’t it just the training that costs a lot in comparison to running it? So if they stopped training new models and just sold their current ones it might be able to run at a profit from year to year, after a huge initial investment that may or may not ever be recovered.
Not really. The infrastructure to run language models is hardware wise demanding, consumes vast amounts of water (cooling) and electricity and requires frequent renewing and added capacity.
Yes it will. None of the current AI companies are profitable, have never been profitable and most likely will never be profitable. Their business model simply isn’t economically sustainable. What is being invested in AI is basically imaginary money in a circle-jerk of companies like Nvidia, Anthropic, OpenAI and others. This artificially bloats their value and there is zero chance in hell that the AI bubble will not burst like nothing ever has before.
This is not to say that LLMs and other fancy jargon generators cannot be useful. They absolutely can. What will probably happen is that people will realize that they are just fancy guessing machines without real understanding behind and learn to use them in that way. I hope at least.
Isn’t it just the training that costs a lot in comparison to running it? So if they stopped training new models and just sold their current ones it might be able to run at a profit from year to year, after a huge initial investment that may or may not ever be recovered.
Not really. The infrastructure to run language models is hardware wise demanding, consumes vast amounts of water (cooling) and electricity and requires frequent renewing and added capacity.