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[–] 176 points 5 months ago (13 children)

Lol, they got told to fuck off for not being profitable.

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  • [–] 41 points 5 months ago (2 children)

    While I love the sentiment; I'm reading this decision by S&P as just about not bending their rules. AI is not thriving fast/convincingly enough to break tradition of big finance; I don't think that makes S&P an ally. And I suspect this means they'll just be joining a bit later.

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  • [–] 28 points 5 months ago (1 child)

    'A bit later' is really all the is required to meet the standard. https://www.cnbc.com/2020/07/21/tesla-isnt-a-gurantee-for-the-sp-500-even-with-year-of-profits.html

    S&P Dow Jones has a history of making companies earn it, including previous Elmo ventures.

    I'm not bullish on any of it, and I'm desperately trying to exit AI holdings as swiftly as I'm able, but I am deeply comforted by major indexes requiring companies demonstrate profitability or at least meaningful actual revenue beyond the self-dealing that we've seen between the IPO hopefuls.

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  • [–] 20 points 5 months ago* (last edited 5 months ago) (4 children)

    ngl if AI dies i hope we get more ethical models, open-weight models (mostly) solve this, but it would be cool if it was trained only on public domain.

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  • [–] 10 points 5 months ago

    Unless the AI is going to give us a cure for cancer or something I'm not really bothered. Seriously the environmental cost is ridiculous I don't care how open weight they are they still practically need a fusion reactor in order to operate and increase the temperature of the local environment by 12°

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  • [–] 7 points 5 months ago (1 child)

    IMHO I'm kinda glad it was trained on all the forum posts I made during what turned out to be the golden age of training data. Now the LLMs sound a little bit like me.

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  • [+] -10 points 5 months ago (5 children)
  • [–] 31 points 5 months ago* (4 children)

    The fact that they tried to get the rules changed so they could get listed on index’s as soon as they IPOd means they’re out of willing creditors and out of cash. They were attempting to dump equity on to 401Ks to pay out the private bag-holders who have been funding them to sell model access at massively discounted rates.

    Even if people host models them selves, the era of constant slop deluge is over simply because all the players giving away access for essentially free are about to go belly up or pivot away from it to other business models.

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  • [+] -17 points 5 months ago (4 children)
  • [–] 27 points 5 months ago* (last edited 5 months ago) (3 children)

    The data center builders and operators are running behind on basically every data center project, massive amounts of Blackwell are just sitting in warehouses right now because they loose money the moment they’re plugged in. New IT load for the operators isn’t even a third of the capacity of the chips sold to these companies. Most of the companies that got switched over to token billing by the model providers are pulling back and freaking out over a yearly “AI budget” annihilated in a quarter. The model providers wouldn’t have swapped to token based billing for enterprise clients if they didn’t have to. They’ve been pumping demand with hype and by selling at a fraction of operational costs. Reporting non-gap EBITA to hide what a mess the financials are.

    The SpaceX S1 alone shows how insanely cash incinerating it all is. Can’t wait to see Anthropic and OpeAIs S1s. It’s gonna be hilarious.

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  • [+] 5 points 5 months ago* (2 children)
  • [–] 4 points 5 months ago (1 child)

    To clarify why the S1s are so important here. There are a ton of laws that prevent companies that have their shares bought and sold on public stock markets from outright lying about the state of their business to the public. This is to ensure that companies can’t just lie to push up share prices.

    Since the most important model providers are currently private, they have not been bound by these laws and have basically been allowed to say what ever they want. With them going public, and the release of the S1s, they need to publicly display accurate financials, not just vague and un verifiable numbers.

    The question of “is this just a fad or is this a revolutionary technology that will reshape the economy” is easily answered if we have accurate accounting of the costs to run these business.

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  • [+] -4 points 5 months ago (1 child)
  • [–] 5 points 5 months ago

    This stuff has been there. Just not much reporting or investigation has been done on it, instead a lot of news outlets focused on interviews with the heads of these companies and thoughtlessly reiterated press releases. Those who have criticized it have mainly just done so in ways that play in to the narrative convenient for the industry “but what if it’s TOO good?”.

    The failure of tech journalism on this topic has been frankly catastrophic.

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