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[–] 1 point 6 months ago (3 children)

They are currently selling it at a huge loss, agreed. They’ve got plenty of runway for specialised hardware prices to come down, for companies to get hooked and plugged into the ecosystem and for real value to be demonstrated.

When this happens they’ll raise prices and companies will gladly pay it.

Profit at this point is not relevant, seen from the perspective of investors.

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  • [–] 1 point 6 months ago (2 children)

    That’s ’embrace, extend, extinguish’ for you. Question is if there is a profitable model to come. The usual economies of scale don’t seem capable of adding up in this case. Even the maniacs on Wall Street are balking.

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  • [–] 3 points 6 months ago* (1 child)

    That’s not quite my understanding of EEE.

    • Embrace - adopt something that someone else has done
    • Extend - add proprietary extensions on top of the original, quicker than the original owner can
    • Extinguish - Kill the original owner off by moving quicker then either slow down or kill your own support for the product

    What the AI model owners are doing seems to me just to be normal loss-leading with a view to gain market share.

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  • [–] 2 points 6 months ago

    That’s fair. I think they are trying to utilize EEE to replace search, content creation, and more - everything AI is being shoveled into. But the main goal is just to force utilization through any means necessary and establish a new market & sales model they are unable to define.

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