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There's "immediately profitable" and "eventually profitable". Vast compute scale allows collection of customer generated data so the latter is possible, AI as
by r00fus 4y ago
There's "immediately profitable" and "eventually profitable". Vast compute scale allows collection of customer generated data so the latter is possible, AI as of yet is not the former.
So GP point still stands. FAAMG can run much larger immediate deficits in order to corner the market on the eventual profitability of AI.
- Tostino 4y agoThe amount of valuable data generated from professionals using these services to work through their problems and find solutions to industry problems is immense. It essentially gives these companies the keys to automating many industries by just...letting people try and make their jobs easier and collecting all data.
- cushpush 4y agoAll this talk that every investment pays off in the end is faulty and dangerous. Many investments don't pan out, 95% of the firms you see in the ticker this decade might be gone, and yet everyone is very confident is underwriting these "losses for future gains" but really it's economies of scale. It doesn't cost MSFT much more to run the GPU than to turn it on in the first place.
- indymike 4y ago> . FAAMG can run much larger immediate deficits in order to corner the market on the eventual profitability of AI. This assumes that there is a corner-able market. Previously, the cost of training was the moat. That appears to have been more of a puddle under the gate than an actual moat.