dragnucs@lemmy.ml to Showerthoughts@lemmy.world · 1 month agoWhile everyone is trying to build a profitable business using AI, why can't AI companies make a profitable businesses using their own AI?message-squaremessage-square145linkfedilinkarrow-up11arrow-down10
arrow-up11arrow-down1message-squareWhile everyone is trying to build a profitable business using AI, why can't AI companies make a profitable businesses using their own AI?dragnucs@lemmy.ml to Showerthoughts@lemmy.world · 1 month agomessage-square145linkfedilink
minus-squareSeb the goblin@lemmy.worldlinkfedilinkarrow-up0·1 month agoTheir business is the LLMs. It’s like asking if a loaf of bread is expensive, then why don’t millers bake bread using their own flour
minus-squarehitmyspot@aussie.zonelinkfedilinkarrow-up0·1 month agoYes, but selling the llms is not profitable either. They are burning through cash at extraordinary rates. Even at highly subsidised rates, ai startups can’t make a profitable product. It’s nuts.
minus-squareSeb the goblin@lemmy.worldlinkfedilinkarrow-up0·1 month agoIt’s not profitable for the mill, yes, but the millers (board members and C-suite) are making Hella bank
minus-squareJaysyn@lemmy.worldlinkfedilinkarrow-up0·1 month ago…by lying to investors and engaging in accounting tricks that would make Enron blush.
minus-squarekestrel7_7@lemmy.worldlinkfedilinkarrow-up0·1 month agoDrawing a healthy salary while the company you work for hemorrhages money is just grifting.
minus-squaresem@piefed.blahaj.zonelinkfedilinkEnglisharrow-up0·1 month agoI bet some Miller’s would vertically integrate in that case
minus-squaremeco03211@lemmy.worldlinkfedilinkarrow-up0·1 month agoIf they were not profitable just selling the flour but saw the potential profitability of baking bread, I’m sure they would. It’s just that they are profitable selling the flour so there’s no need.
Their business is the LLMs. It’s like asking if a loaf of bread is expensive, then why don’t millers bake bread using their own flour
Yes, but selling the llms is not profitable either. They are burning through cash at extraordinary rates.
Even at highly subsidised rates, ai startups can’t make a profitable product. It’s nuts.
It’s not profitable for the mill, yes, but the millers (board members and C-suite) are making Hella bank
…by lying to investors and engaging in accounting tricks that would make Enron blush.
Drawing a healthy salary while the company you work for hemorrhages money is just grifting.
I bet some Miller’s would vertically integrate in that case
If they were not profitable just selling the flour but saw the potential profitability of baking bread, I’m sure they would. It’s just that they are profitable selling the flour so there’s no need.