The chipmaker, now the most valuable public company in the world, said strong demand for its chips should continue this quarter.
The chipmaker, now the most valuable public company in the world, said strong demand for its chips should continue this quarter.
Really? Companies are going to keep building datacenters that need entire nuclear reactors to themselves without any of that converting into revenue? This is going to keep going forever in your mind?
A lot will fail, sure, but that happens in literally every single developing industry. There are plenty of industries out there that aren’t profitable, but are still going. Tesla wasn’t profitable between 2003 and 2020, yet here we are, where they not only make profit, but they’ve kickstarted the electric cars industry. And that’s despite that they sell shitty cars and their CEO is a nazi.
What AI companies are profitable? Besides the one selling shovels in a gold rush.
They will be profitable in ten years after everything crashes and only a few are left
The power usage is massively overstated, and a meme perpetuated by Altman so he’ll get more more money for ‘scaling’. And he’s lying through his teeth: there literally isn’t enough silicon capacity in the world for that stupid idea.
GPT-5 is already proof scaling with no innovation doesn’t work. So are open source models trained/running on peanuts nipping at its heels.
And tech in the pipe like bitnet is coming to disrupt that even more; the future is small, specialized, augmented models, mostly running locally on your phone/PC because it’s so cheap and low power.
There’s tons of stuff to worry about over LLMs and other generative ML, but future power usage isn’t one.
Except none of these companies are making money. Like almost literally none. We’re about three years into the LLM craze, and nobody has figured out how to turn a profit. Hell, forget profit, not bleeding through prodigious piles of cash would be a big deal.