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‘We created a monster’: companies rein in AI usage as costs strain budgets — Amazon, Walmart and Uber are among early adopters that have introduced caps or discouraged wasteful activity (www.ft.com)
submitted 4 months ago by to c/technology@lemmy.world
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[–] 9 points 4 months ago (1 child)

I am not a CEO and I hope this AI bubble bursts already.

That said, if I were a CEO using all possible tokens while they are heavily subsidized and tightening the purse when they get more expensive does not sound like the worst strategy to me. You get all your teams to build some expertise and (hopefully) get a sense of where the technology might have some ROI.

If only they had presented it this way (and not "AI therefore layoffs") probably a lot of us would hate it much less now.

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  • [–] 2 points 4 months ago*

    There is a limit to how long an AI company can keep subsidizing the tokens, eventually the financial ruin ensues. Every chat request that goes to the LLM has an actual physical compute and RAM cost, which scales to hilarious levels as you keep chatting in the same thread and the context size widens. It scales to astronomical levels when the query requires high-level analytical or reasoning skills like thinking..., pondering..., bloviating..., etc. - which is exactly what enterprise users intend on doing. The Uber story made it quite clear - even some of the big techs don't have the stomach for that kind of unlimited resource drain.

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