Nice try, I ain't gonna pay anyway

Of course it is, it’s essentially a scam. They just need enough humans to keep investing until they check out and run with a bailout.

I mean, this is no different than Walmart making prices low until other businesses die out and then raising them.

It is no different than police shoving all the homeless people and drug addicts into one area of town to crash the property prices, and then evicting them once developers buy everything for cheap.

They're purposely operating at a loss in the expectation that they can get ingrained into a ton of workflows, and then gouge everyone absolutely to death while also worsening the quality of the service to make it cheaper for them to run.

If it weren't so horrible for the environment, I'd kind of like it, because all the dumbass executives that are signing up for this are going to get exactly what they deserve. You'd think they'd recognize a scheme when they see one.

reminder than during 2019 there were streaming services popping left and right, all showing tremendous growth because they started from zero, and articles were about how bad Netflix was doing due to having practically no growth compared with the competition (they already had a massive subscriber base). Twist? Netflix was the only streaming service that was actually making a profit, the rest were a massive loss but big growth.

Needless to say most of those streaming services died; who remembers DC streaming service, or Yahoo's? While Netflix is basically as stong as ever, despite the prevalent enshitification happening through the whole industry.

Point of the story? shareholders don't care about stable profitable business, only cancerous growth. AI is like that, zero profits, ton of cost, but as long as they show growth the shareholders are happy, regardless of how cooked the books are.

Trust me bro we're so close to profitability bro, just need this IPO to secure funding one last time bro then we'll be profitable bro I swear.

I can't imagine paying for AI when the open source tools have made it so easy to set up a model locally.

Honestly Google is likely to beat openAI and Anthropic as things are.

OpenAI and Anthropic have to buy/rent their hardware from Nvidia, while Google is making their own TPU hardware. Google's hardware costs on AI is way lower, every dollar they spend on it goes a lot farther.

And unlike the other two, they're already a profitable company. They're making record profits right now. They don't have a desperate need to figure out how to make back billions on their AI models, they can just keep offering Gemini at a comparatively cheap price and wait for anthropic and open AI to bankrupt themselves.

AI Bubble burst coming sooner?

Now, I'm no MBA, but that seems like a bad business plan...

It's gonna come crashing down pretty soon. It's gonna hurt all of us. It won't hurt the people responsible nearly enough.

they are spending infinite money for every $1 i pay them

Good thing I don't personally pay them anything

so these crazy prices i hear about being implemented (like at github) should actually be at least 10x higher?

Oh come on bubble, why won't you crash already?

Definition of a Bubble. These AI huckster keep stringing investors on though. Sadly, I think these public IPOs coming up for Space X, OpenAI, and Anthropic will fall short of expectation and trigger the bubble popping.

How much do they spend when I pay nothing?

My first use of Claude this week, for code reviews only(since no LLM can be trusted to write a user story or test suite), had it gaslight me.

It marked down my code for using a specific practice to make some xml safer and easier to read.

When I tried things its way, it wanted me to change it back.

looks inside

But if you use the $100 a month Claude Max plan, and you would use it to the weekly limit by going full ‘agentic coding’ (so almost no human in the loop) you would use an amount of tokens that would cost you more than $1000 at API-pricing.

If I watch 600 movies every day on my netflix subscription I am using more energy than I pay them for. Obviously everyone is like me. Therefore they are losing money overall.

Wait, their (netflix) earnings say they made a profit last quarter. But my calculations were waterproof!

Probably anthropic are not net positive, but they are not spending 10x what people pay them for tokens.

Good thing all the companies leaning hard on AI 10 X'd their profits... Wait...