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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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[–] -1 points 1 year ago (3 children)

I doubt it, LLMs have already become significantly more efficient and powerful in just the last couple months.

In a year or two we will be able to run something like Gemini 2.5 Pro on a gaming PC which right now requires a server farm.

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  • [–] 10 points 1 year ago (2 children)

    Current gen models got less accurate and hallucinated at a higher rate compared to the last ones, from experience and from openai. I think it's either because they're trying to see how far they can squeeze the models, or because it's starting to eat its own slop found while crawling.

    https://cdn.openai.com/pdf/2221c875-02dc-4789-800b-e7758f3722c1/o3-and-o4-mini-system-card.pdf

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