Dear Fedi friends,
I hereby present you my new favorite website: https://isaiprofitable.com, which tracks the spending and revenue of all the major AI companies.
Oh it is glorious - the perfect link to share with AI-pilled people in your life.
Spoiler alert: there is a NO in big red letters on the homepage. And there's a running tally of the money spent on AI since the page loaded.
@davidgerard you would love it
@LordCaramac @stib @_elena @davidgerard
money creates poverty. there is no poverty in places where there is no money.
food grows right up from the ground, there are plenty of fish in the water, and all sorts of meaty creatures wandering around. in many countries where there is widespread hunger, the country's main exports are grains - especially sorghum, which goes into dog food. AND fossil-fuel corporations are still producing ethanol - which is made from corn. capitalism is just the latest incarnation of wealth creation. all wealth is created through exploitation, always.
Yes, this was my favourite part, lurking at the bottom…
Thank you for a consequential followup to https://www.web3isgoinggreat.com
I would have wished for a little bit more cynical name though.
Also, it seems so far that there's only one profiteer in the gravedigger business: the shovel maker.
@Brokar is this cynical enough
@_elena money-wise no. But as regards total control and power?
Quand ça va péter, ça va être horrible et spectaculaire.
This reminds me the 2K dotcom era, and specifically this french parody website.😋
https://web.archive.org/web/20001206014800/http://www.vakooler.com/
@_elena
I sent this site to someone I know who preaches that “capitalism will shift the market towards saving the planet’s ecosystem”
He sent me back a screenshot of the change in NVDA price over the past couple years and said “It’s done pretty well for the past 3.5 years! The answer is yes, AI has been very profitable [for] anyone with exposure to those AI platform stocks in an IRA or 401(k) and many users of ChatGPT, Claude, etc, who pay little but now can’t imagine life without it”
I'm engaged in a Mastodon chat with someone like this right now. I sent them the URL, but I don't think they opened it.
It's difficult to convince someone of something when their paycheck depend on them not understanding it.
It's missing a "No (unless you're Nvidia)" footnote
Thanks for sharing the info! 👍 🌹
@nerpulus @_elena @davidgerard Now that is easy to answer: NVIDIA is selling graphics cards, real physical stuff that they produce in factories and sell for more than they cost to produce. That is their past, current and very real business model.
Everyone else is buying graphics cards or investing into others who want to build datacenters and hope to eventually find a business model for AI.
However, while NVIDIA does not depend on finding a business model for AI at the moment, when the bubble bursts and there are tons of chips in warehouses, their production will come to a halt too.
I am skeptical of the economics behind all the AI investments, but I'm not sure how this is supposed to convince anyone.
The big AI companies are operating at a loss on purpose to reel people in and make companies and people dependent. The jury is still out if this strategy will work.
Plotting total spend against total revenue right now does not really give any information on whether they can get ROI, except obviously that they'll need to earn a lot of money.
@bart @_elena @davidgerard @zverik It won't convince anyone.
I have boosters in my life who know they're the recipients of one of the largest subsidies in history and think it's worth it.
As for the strategy, it won't work. Traditional software "freemium" subsidizes have unit economics that don't explode when you add new users. But LLM power users can burn x1000 more tokens than the average user. I wrote about this "cargo cult" unit economics in a huge post.
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