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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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[–] 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.

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  • [–] 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.

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  • [–] 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

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