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Stability AI reportedly ran out of cash to pay its cloud GPU bills
- deleted 2y ago[deleted]
- datadrivenangel 2y ago$11M in revenue on $153M in cloud spend + salaries... Is the AI bubble going to pop hard soon?
- _mlbt 2y agoI think it will just shift away from relying on cloud providers for the underlying infrastructure.
- romeros 2y agoAI is not a bubble. Anymore than iphone / the internet was a bubble.
- Grimblewald 2y agoand yet there was a dotcom bubble.
- joezydeco 2y agoSo where's the revenue?
- consumer451 2y agoAt companies with a business plan like Midjourney, which has 200M in revenue, 40 employees, and no investors.
- xarope 2y agoMS is pushing hard with copilot for $30/user/month (annual commitment... I see they've learned from Adobe, sigh).
- aurareturn 2y agoOpenAI, Microsoft, Google, and other companies who have existing products and added AI, such as Notion and Adobe.
- brailsafe 2y ago> Anymore than iphone / the internet was a bubble. By that do you mean they're technology platforms that outlive their obvious peak hype investment dice rolls?
- kromem 2y agoAs a broad advancement that's true, but on individual companies there's going to be a ton that don't make it (which is the case for all companies, but for AI there's a significant number of new ones to fail within the next 10 years).
- eek2121 2y agoYou have no way of knowing that. Remember, the parent poster is referring to the current ridiculous hype + push of current AI. Current AI models were trained on copyrighted material. Lawsuits are taking place. Many different members of the US government have indicated that just because AI is new and fancy, does not mean companies get to violate established law, including copyright. The head of the FTC was the most recent person to state this. OpenAI could very likely be sued out of existence. When that happens, all who invested in them could lose billions. The US government very likely won't intervene because there are multiple lessons to be learned from this. Courts are there to enforce the law, regardless of how "amazing" a technology may appear.
- eek2121 2y agoTo add something I forgot to say, yes, AI as a concept is here to stay. The current hype surrounding existing companies will not, however.
- Legend2440 2y agoThe internet was a bubble too. Remember the dot com era? Just because the tech is legit doesn’t mean it can’t have a bubble.
- RamblingCTO 2y agoDo you know what a bubble is?
- Nullabillity 2y agoThen where's the use case?
- selfmodruntime 2y agoExcept that they're not talking technology, they're talking economics. It may be significantly to earn a profit on selling an iPhone than selling continued AI access at a reasonable price.
- MomoXenosaga 2y agoRookie numbers. How much did Uber lose? Wirecard?
- aurareturn 2y ago>Is the AI bubble going to pop hard soon? No. I think it's going to get way bigger. When it pops, it will still be bigger than February 2024. Right now, the companies making money are Microsoft, OpenAI, AI chip makers. Google might join soon if they get their act together. Apple as well. Basically, only existing large tech companies + OpenAI are making money so far. However, I expect newer AI-only startups, to start making money in the near future. For example, I can see a company like Devin AI get loads of revenue very quick such as when ChatGPT launched. As for open source AI companies like Stability, they're in trouble. Unfortunately, no one has figured out how to make money with open source AI. It used to be that you'd open source your tool, get adoption, then offer a cloud. With open source AI so far, this hasn't come true for whatever reason. Perhaps we're just early.
- checker659 2y agoYeah. Looks like the gods demand one last AI winter.
- ChrisArchitect 2y ago[dupe] More discussion: https://news.ycombinator.com/item?id=39868539 https://news.ycombinator.com/item?id=39868539
- ShamelessC 2y agoAnother one of those “what good reason was there for flagging this” moments.
- deleted 2y ago[deleted]
- evilduck 2y agoBecause Forbes is a clickbait domain.
- ChrisArchitect 2y agoRelated: StabilityAI chief resigns, raising doubts about AI start-up’s future https://news.ycombinator.com/item?id=39894334 https://news.ycombinator.com/item?id=39894334
- barfbagginus 2y agoThis makes me worry that the 20 bux a month I pay for GPT4 could end up being more like 200 bux on the backend. When they stop running gpt4 as a loss leader, I'll probably lose access.
- arvinsim 2y agoWhich is why things like local LLMs are important.
- jsheard 2y agoThe good local LLMs are also loss leaders, a company spends a lot of money training a model then gives it away for free in the hopes they can eventually pivot to an actual business model. The work being done with local LLMs seems to take for granted that Mistral and co will just keep shoveling investor money into the furnaces forever to keep the free LLMs coming, and there is no contingency plan for when that money runs out. Likewise local image generation is almost entirely dependent on the charity of one company, and per the OP that company is on the verge of going broke.
- dimal 2y agoThere will be an enshittified ad supported tier. You’ll never know when the model is hallucinating and when it’s actively trying to manipulate you. It’ll be great.
- xetsilon 2y agoI am not worried about GPT4 like this but GPT6 or GPT7. On the other hand, I think of how at the individual level if they price me out then they don't have a mass scale product. I suppose I worry far more about this with Sora too. I have also spent about $300 on Midjourney in the last 18 months but I don't know how to spend money on Stability.
- GraceGather 2y agoSuper easy to rack up a hefty bill when you're training AI. The company I work for is trying to actually tackle this. We all have an AI background and were super sick of the costs. Here's the concept we're building: https://www.trybuild.ai/ https://www.trybuild.ai/ In the meantime, we're solving this somewhat manually. Hit me up if you need compute, we can usually find a cheaper alt. https://www.trybuild.ai/m https://www.trybuild.ai/m