Mastodawn

Jason Koebler Jul 12, 2024

A blistering Goldman Sachs research report wonders if the massive investment in Generative AI will ever pay off, says stock gains are already baked in "outside of the most bullish AI scenario," and posits that Gen AI is likely a bubble: https://www.404media.co/goldman-sachs-ai-is-overhyped-wildly-expensive-and-unreliable/

Goldman Sachs: AI Is Overhyped, Wildly Expensive, and Unreliable

One of the world's largest investment banks wonders if generative AI will be worth the huge investment and hype: "will this large spend ever pay off?"

404 Media

Show thread

Sherri W (SyntaxSeed)Jul 12, 2024

@jasonkoebler

"To break even on what they’re spending on AI compute infrastructure, companies need to vastly scale their revenue"

Doesn't revenue have to *also* come from consumers increasing their purchases of a product or service?

I just don't see people or small businesses around me being flush with cash they are ready to spend if only there were #AI features. Quite the opposite in fact.

They might cut costs only to break even with falling income from financially exhausted customers.

Show thread

Sherri W (SyntaxSeed)

@jasonkoebler At best I think this will be treading water for corporate bottom lines while spreading more misery via the resulting job losses & environmental damage.