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It’s a giant leap of technology? Investing in that is the perfect usage of debt.
by RA_Fisher 1y ago
It’s a giant leap of technology? Investing in that is the perfect usage of debt.
- general1465 1y agoIt makes no money, especially with open source models around, which companies can run on their own hardware.
- xyzzy123 1y agogestures doors opening upwards vs doors opening outwards In the short term stuff doesn't need to bring in revenue - if the belief that it might make a lot of money moves share prices that is good enough. You don't even need to believe that yourself, you just need to believe that a sufficient number of other people will be fooled. What bugs me about recent circular dealing along these lines is, it seems like sort of trick that can be used to steal from people holding indexes. If companies like Nvidia and Oracle go up as a result of circular deals that are not creating "real" value - that nonetheless causes index funds (i.e, people's retirement accounts) to buy more of them.
- general1465 1y agoOpen AI is raising what, like 7 Trillion USD? What kind of revenue would that need to bring back to actually make a business sense? The massive problem of OpenAI and others are open source models. Companies can count and if bill for AI assistants are above 100k USD, why not just buy a server for same money, run there open source model and as bonus point stop leaking your IP to 3rd parties.
- RA_Fisher 1y agoBc open source models aren’t as good and it’d cost a lot more than $100k to self-host given the same load.
- RA_Fisher 1y agoThat’s what people said about SaaS. People pay good money for things they could theoretically do themselves with more time and money. Also, according to LLM Arena, all the best models are proprietary (bc trade secrets can be very powerful).