sanitation'At some point you've got to make money': Goldman's top AI skeptic warns the clock is running out ahead of OpenAI and Anthropic IPOs
LibertyLizardI’m not much of an AI skeptic compared to most on Lemmy. I think the technology is incredibly useful and probably beneficial to society if we can remove the control of the ruling class.
That said I truly don’t understand how the AI business model is supposed to work. I’m sure there is some market for businesses, governments, etc., basically people who have too much money who may want to pay for the latest and greatest models.
But I don’t really see the average consumer doing this when slightly less good versions will almost certainly be available for free. And the above customers will not be able to support the level of investment that’s going on right now.
BluescluestoothpasteThe business model should be that with economies of scale they could provide compute much cheaper than average consumer can buy to run locally. So yeah, that means they gotta be able to support these $20/mo plans indefinitely.
If they jack up the prices i can just buy a 128gb ryzen ai machine for the price of $200/mo claude for a year
The business model should be that with economies of scale they could provide compute much cheaper than average consumer can buy to run locally.
That business model assumes that the huge cloud models will always maintain a gap worth paying for, compared to the local models. I’m just not convinced that the average consumer will need cloud models for summarizing their emails or the news of the day.
And for actual costs of their data centers, there literally aren’t enough humans in the world where $20/month AI spending per person will help them break even. They’ll need to sell big accounts (many businesses spending billions per year) in order to break even.