yes_this_time comments on Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user.

Technology

89,597 readers

13,778 active

2,336 users here now

This is a most excellent place for technology news and articles.

Our Rules

Follow the lemmy.world rules.
Only tech related news or articles.
Be excellent to each other!
Mod approved content bots can post up to 10 articles per day.
Threads asking for personal tech support may be deleted.
Politics threads may be removed.
No memes allowed as posts, OK to post as comments.
Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
Check for duplicates before posting, duplicates may be removed
Accounts 7 days and younger will have their posts automatically removed.

Approved Bots

founded 3 years ago

moderators

[–] yes_this_time@lemmy.world 3 points 1 year ago (3 children)

Some people are finding value in LLMs, that doesn't mean LLMs are great at everything.

Some people have work to do, and this is a tool that helps them do their work.

permalink

fedilink

source

parent

hideshow 3 child comments

[–] mojofrododojo@lemmy.world 0 points 1 year ago (2 children)

they have no idea if what they're paying is what it actually costs though, so good luck building tools for the future when the resources are artificially priced.

permalink

fedilink

source

parent

hideshow 2 child comments

[–] yes_this_time@lemmy.world 0 points 1 year ago (1 child)

I mean, I agree that a lot of money was spent training some of these models - and I personally wouldn't invest in an ai based company. The economics dont make sense.

However, worst case, self hosted open source models have got pretty good, and I find it unlikely that progress will simply stop. Diminishing returns from scaling data yes, but there will still be optimizations all through the pipeline.

That is to say, LLMs will continue to have utility regardless if Open AI and Anthropic are around long term.

permalink

fedilink

source

parent

hideshow 1 child comment

[–] mojofrododojo@lemmy.world 0 points 1 year ago* (last edited 1 year ago)

However, worst case

worst case the self hosted ai still has to be trained on stolen corpus.

worst case the self hosted ai still has ridiculous consumption of resources.

there's a bunch much much worse cases than your worst case even touches.

you don't even consider how it's built on theft at all anymore do you?

fucking ai bros

edit: whiney pouty downvotes won't change the fact that you've been taken by a cult of morons lol

permalink

fedilink

source

parent