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Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user. (techcrunch.com)
submitted 1 year ago by to c/technology@lemmy.world
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[–] 18 points 1 year ago (1 child)

Yes, but that's not taking over jobs. It's a minor convenience occasionally. That won't justify monthly.pricing they need to turn profitable, not will it have the wide range of applications for.every industry that they hoped for.

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  • [–] 5 points 1 year ago*

    Some jobs have been lost to to changing to AI. Not because the AI was the better choice, but because it was seen as a short term profit (cheap AI, less labor costs). Other places have moved in AI more gradual, like in requiring it as part of work, and that can be easier to pull back once it fails because the people aren't gone.

    The growth of LLMs started as research, but marketing got involved and that's why it's everywhere now, making promises that LLMs can't fulfill (mainly because everyone ran with the "AI" label, when it's not).

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