this post was submitted on 09 Oct 2026

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AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback. (futurism.com)

submitted 1 month ago by eicker@lemmy.world to c/technology@lemmy.world

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[–] Knock_Knock_Lemmy_In@lemmy.world 2 points 1 month ago (6 children)

All the AI companies are running at loss

That is if you include training. Look at deepseek for an idea of inference costs. At that level AI coding is sustainable (but not worth $2tn).

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[–] wewbull@feddit.uk 4 points 1 month ago (5 children)

Why wouldn't you include training? Training is vital to their product.

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[–] Knock_Knock_Lemmy_In@lemmy.world -2 points 4 weeks ago (4 children)

Is it? It's vital to the tech giants marketing and trillion dollar valuation. But I don't think it's vital to most of their clients anymore.

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[–] wewbull@feddit.uk 2 points 4 weeks ago (3 children)

If you want it's "knowledge" to be up to date, the training never ends.

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[–] Knock_Knock_Lemmy_In@lemmy.world 1 point 4 weeks ago (2 children)

In theory the "reasoning" part doesn't need a knowledge update.

Cost/benefit maybe the knowledge update only needs something every 5 years.

Basically I can see a world where inference is provided and consumed at cost. I can't see one where customers are willing to cough up billions for a slight increase in the knowledge base.

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[–] wewbull@feddit.uk 1 point 4 weeks ago (1 child)

5 years ago we were mid-pandemic. That's a big knowledge gap.

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[–] Knock_Knock_Lemmy_In@lemmy.world 1 point 4 weeks ago

I'm comparing the whole of human knowledge to 5 years of additional facts. Most useful things are known. An llm doesn't need to know the current US president to invent a biscuit recipe.

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