Is AI making the big bucks?

[Free]

All signs point to...possibly not? Especially in regards to the huge investment costs.

Investors Are Suddenly Getting Very Concerned That AI Isn't Making Any Serious Money

An increasing number of Silicon Valley investors and Wall Street analysts are starting to ring the alarm bells over the money spent on AI.

futurism.com

An increasing number of Silicon Valley investors and Wall Street analysts are starting to ring the alarm bells over the countless billions of dollars being invested in AI, an overconfidence they warn could result in a massive bubble.

As the Washington Post reports, investment bankers are singing a dramatically different tune than last year, a period marked by tremendous hype surrounding AI, and are instead starting to become wary of Big Tech's ability to actually turn the tech into a profitable business.

"Despite its expensive price tag, the technology is nowhere near where it needs to be in order to be useful," Goldman Sach's most senior stock analyst Jim Covello wrote in a report last month. "Overbuilding things the world doesn’t have use for, or is not ready for, typically ends badly."

Overbuilding things the world doesn’t really - or yet - have a use for? When have we seen that before?

*cough* the metaverse *cough*

 

[Noodles]

I think it has a core problem.

All these services offer services for $20 a month. Seems like a standard price.

I feel like anyone who cares enough about AI that they might spend $20/month, is probably also going to care enough to just have the hardware to do it locally in house.

 

[GoblinCampFollower]

Tale as old as time. A lot of good business literature I was forced to read emphasizes that you start with your business need then find tech to support it. ...but companies will often do it the other way around. I think for generative AI in particular, greedy investors wanted to badly to believe this was comparable to a real general intelligence that would just be a golden goose for them. The realities of the technology are much more modest.

 

[Caete]

My observations/opinion:

AI is a resource waste. As old as it is, the only thing AI does well is to create mediocre scripts for piss poor movies. Image wise, it falls on its face more than stands up proud. It still gets confused over hands, how many thumbs and fingers each has, elbows, and how many arms. Legs, how many times is three the answer or the worse Capenter's Thing/C'thulu spawn with extra legs coming from legs or feet even. Heaven forbid you try and have crossed legs, that results in multiple feet with different shoes wtf? or more commonly, feet on the wrong legs. Yeah nothing says great job like getting confused that the left leg is crossed over so the right foot goes onto it. Then there is the matter of toes, I've seen results so far with 8 toes per foot and a big toe. Hell, it can't even keep styles right. Want a tarot type background? Ok but forget all your parameters for the costume as tarot means you want elegant goth lolita fashion.

Will it ever get better? Doubtful as the "successful" artists who use AI tend to run the exact same prompts and turn out cookie cutter art with colour variations all the while tending to hide the feet and only show grasping or clenched fists.

 

[Noodles]

Tale as old as time. A lot of good business literature I was forced to read emphasizes that you start with your business need then find tech to support it. ...but companies will often do it the other way around. I think for generative AI in particular, greedy investors wanted to badly to believe this was comparable to a real general intelligence that would just be a golden goose for them. The realities of the technology are much more modest.

Yeah this is another issue. After Crypto and NFTs and Metaverse, it really feels like another desperate attempt to overhype a big nothing burger for profit.

 

[Kalel]

AI we have right now is not the true level AI we want or expect.. it's a bunch of specialized models and prediction algorithms... they don't quite think for themselves just yet and no where near what we think of in movies and video games .. this is typical rush to spend money on new tech in an attempt capitalize the market it will eventually burst... like the internet and any other tech that comes out... eventually the tech will slowly adapt over time..... next thing you'll know like blue tooth and the internet it will be everywhere and apart of life... Give it 30-40 more years....

 

[Free]

A very long post on how the Black Friday (not a good one, a bad one) for AI has already happened.

Burst Damage

Soundtrack: Masters of Reality - High Noon Amsterdam I have said almost everything in this piece in every one of these articles for months. I am not upset, but just stating an obvious truth. The current state of affairs effectively pushes against the boundaries of good sense, logic and reason,

www.wheresyoured.at

 

[Bartholomew Gallacher]

One company for sure is making the big bucks right now thanks to AI, and it's the AI shovel maker supplier Nvidia!

Just look at the official numbers of the last quarter: NVIDIA Announces Financial Results for Second Quarter Fiscal 2025

Nvidia has right now a profit margin of whopping 60%, which is twice what Apple has.

They still got more or less the monopoly on AI supply technology, because AMD and Intel are nowhere near their performance. If you are serious about AI, you will buy Nvidia. This monopoly might be gone in a near future, but for now we've got to live with it.

 

[GoblinCampFollower]

One company for sure is making the big bucks right now thanks to AI, and it's the AI shovel maker supplier Nvidia!

Just look at the official numbers of the last quarter: NVIDIA Announces Financial Results for Second Quarter Fiscal 2025

Nvidia has right now a profit margin of whopping 60%, which is twice what Apple has.

They still got more or less the monopoly on AI supply technology, because AMD and Intel are nowhere near their performance. If you are serious about AI, you will buy Nvidia. This monopoly might be gone in a near future, but for now we've got to live with it.

It might be a general rule that you want to supply the hype, rather than directly going after whatever is hyped. Another example was how many successful business people built bars, saloons, brothels etc to help the gold miners during the old gold rush, rather than directly mining. My dad also bought a bunch of Nvidia stock a while back with my encouragement.