Finally, some good news.
they will somehow shift the cost on the consumer and continue on
Don’t worry. An XBOX will cost 1400$ soon to help make up for it.
Also, with mandatory AI Gamer Buddy™ so everyone will buy one themselves instead of going over to your friend’s house to play
Tired of waiting for your friends to get off work? Don’t bother, with your new AI Buddy you will always have someone imaginary to play with.
As a bonus, you can share all your secrets with AI Buddy. AI Buddy will anticipate your needs, desires, and will always be there for you. AI Buddy will never get mad and will always say you’re the best.
You will quickly wonder why you ever hung out with your friends after AI Buddy shows you what they say behind your back. AI Buddy is the only friend you will ever need.
*Microsoft is not responsible for AI Buddy actions including but not limited to plotting your death, impersonating you to drive your friends away, and selling your deepest darkest desires to advertisers.
Move fast and burn everything down
Did they check the couch cushions?
Who wants to give me a billion dollars to dig a hole and I’ll give you a billion to fill it back in and we’ll both say to investors we posted a billion dollars in revenue.
So, #FuckAI?
Fuck AI, it’s a bubble, etc. But I do wonder how much of the spending is actual revenue-generating operating costs and how much is further investment/R&D. I doubt Sam Altman sees spending Microsoft’s billions on whatever tf he wants as a loss.
You have to make money to lose money.
That’s not what the bank told me
Just exploitative market grab for early dominance. (Or: “Grift” lol.) They will make it back when all of us have no choice but use chatgpt for everything.
how does it make money tho?
I don’t see them eliminating Linux from the internet
technically according to NSPM-7 any FOSS is terroristic by nature because it’s anticapitalist.
that means if you have contributed to FOSS at any time, you are a terrorist. technically.
I know this is not a real discussion :D
But I don’t think FOSS is inherently anticapitalist. It’s just not late stage capitalism. There are plenty of commercial FOSS projects.
Sure you could compile them from source or download somones executable. But especially companies often want convenience, customer support and LTS versions.
There are, of course, open source licenses that don’t allow for commercial use without a license.
Also, there are lots of industries that need guarantees about the software, and even CC0 open source software doesn’t come with those guarantees; those come from a commercial use and support contact.
Its a bubble
Billions in investment. Trillions in speculation. All on something that makes less money than Genshin Impact.
Fun times.
More like a drain amirite???
rookie numbers… you gotta pump it up
Maybe, just maybe, the bubble started bursting now.
Would be nice, I want to buy some ETFs at a discount
AI is funded solely by sunk cost fallacy at this point. I wonder how long it will be before investments start getting pulled back because of a lack of ROI. I can already feel the sentiment towards AI and it getting pushed in everything turning negative amongst consumers recently.
I wouldn’t have a problem if they were actually investing the money in something useful like R&D
Nearly all the investment is in data centers. Their approach for the past 2 years seems to be just throwing more hardware at existing approaches, which is a really great way to burn an absurd amount of money for little to nothing in return
It’s very corporate, isn’t it? “Just keep scaling what we have.”
That being said, a lot of innovation is happening, but goes unused. It’s incredible how my promising papers come out, and get completely passed over by Big Tech AI, like nothing matters unless it’s developed in house.
The Chinese firms are picking up some research in bigger models, at least, but are kinda falling into local maxima too.
Investment is done really to train models for ever more miniscule gains. I feel like the current choices are enough to satisfy who is interested in such services, and what really is lacking is now more hardware dedicated to single user sessions to improve quality of output with the current models.
But I really want to see more development on offline services, as right now it is really done only by hobbyists and only occasionally large companies with a little dripfeed (Facebook Llama, original Deepseek model [latter being pretty much useless as no one has the hardware to run it]).
I remember seeing the Samsung Galaxy Fold 7 (“the first AI phone”, unironic cit.) presentation and listening to them talking about all the AI features instead of the real phone capabilities. “All of this is offline, right? A powerful smartphone… makes sense to have local models for tasks.” but it later became abundantly clear it was just repackaged always-online Gemini for the entire presentation on $2000 of hardware.
what really is lacking is now more hardware dedicated to single user sessions to improve quality of output with the current models
That is the exact opposite of my opinion. They’re throwing tons of computing at the current models. It has produced little improvement. The vast majority of investment is in compute hardware, rather than R&D. They need more R&D to improve the underlying models. More hardware isn’t going to get the significant gains we need
The problem is there is little continuous cash flow for on prem personal services. Look at Samsung’s home automation, its nearly all online features and when the internet is out you are SOL.
To have your own Github Copilot in a device the size and power usage of a Raspberry Pi would be amazing. But then they won’t get subscriptions.
more development on offline services
There is absolutely massive development on open weight models that can be used offline/privately. Minimax M2, most recent one, has comparable benchmark scores to the private US megatech models at 1/12th the cost, and at higher token throughput. Qwen, GLM, deepseek have comparable models to M2, and have smaller models more easily used on very modest hardware.
Closed megatech datacenter AI strategy is partnership with US government/military for oppressive control of humanity. Spending 12x more per token while empowering big tech/US empire to steal from and oppress you is not worth a small fraction in benchmark/quality improvement.
One of our biggest bookstores contracted with a local artist for some merch. That artist used AI with predictable results. Now everyone involved is getting raked over the coals for it.
No surprise, they just announced a 4th round of layoffs too. 😟
https://www.koin.com/news/portland/powells-layoffs-employees-10292025/
Why do you think AI is pushed so hard?
Everyone is aware this has to be useful. Too much money.
Still the powers that be will do everything to avoid a hard crash, which would be so much earned.
The whole “AI” thing is one big grift.
One man’s quest to own all the leather jackets on Earth.
I agree, and essentially they used slightly reworked old neural network technologies, increasing their power with the help of data centers.
When I lose $11 Billion dollars, I have to go to bed without supper.
If you owe the bank $100, that’s your problem; if you owe the bank $100 million, that’s the bank’s problem.
The difference between 100 million and 11.5 billion is about 11 billion. If you own a bank 11 billion that’s not only that bank’s problem, it’s the economy’s problem.
It’s about 11.5 billion, really.
It’s exactly 11.4 billion, really.
Well, if you want to get exact, sure. But if we’re talking about half units, like 11 and a half billion, then 11.4 is so close to 11.5 there’s no difference and calling it just about 11 sorta implies that it’s a more significant difference IMO
You need to be as precise as your resolution, otherwise the precision is meaningless. I guess you could argue that your resolution is units of half-billion (since some things are measured like that), but the initial value of 0.1B, and your use of 0.5 rather than ‘half’ suggests a resolution of 0.1B.
This is different to the aphorism ‘The difference between a million and a billion is about a billion’, both because of the difference in scale, and the quoted resolution.
So I wondered a bit how much it actually affects the economy.
“S&P 500” companies’ market cap is about 57 trillion dollars with a P/E ratio of about 30. So openai by itself is dragging down the total s&p 500 earnings by only about 0.5%. The bigger problem is that there are multiple companies like openAI, and a large chunk of the entire economy’s valuation is tied to the promise that all the AI companies will somehow become profitable sometime soon.
When you put it that way, I’m actually kind of mad. Most of my retirement is in index funds, so essentially OpenAI just pissed away half a percent of my life savings in the last quarter!
If OpenAI goes down then it will start a domino effect as people lose confidence in AI and AI companies. That’s how the bubble pops.
So it ALL depends on the definition of “soon”?
Probably
I was referring to the general concept behind the quote.
I originally want to post the OG (apocryphal?) variant:
Owe Your Banker £1,000 and You Are at His Mercy; Owe Him £1 Million and the Position Is Reversed
But it sounds rather quaint these days.
