$11M in revenue on $153M in cloud spend + salaries...
Is the AI bubble going to pop hard soon?
Is the AI bubble going to pop hard soon?
No. I think it's going to get way bigger. When it pops, it will still be bigger than February 2024.
Right now, the companies making money are Microsoft, OpenAI, AI chip makers. Google might join soon if they get their act together. Apple as well.
Basically, only existing large tech companies + OpenAI are making money so far.
However, I expect newer AI-only startups, to start making money in the near future. For example, I can see a company like Devin AI get loads of revenue very quick such as when ChatGPT launched.
As for open source AI companies like Stability, they're in trouble.
Unfortunately, no one has figured out how to make money with open source AI. It used to be that you'd open source your tool, get adoption, then offer a cloud. With open source AI so far, this hasn't come true for whatever reason. Perhaps we're just early.
By that do you mean they're technology platforms that outlive their obvious peak hype investment dice rolls?
Many different members of the US government have indicated that just because AI is new and fancy, does not mean companies get to violate established law, including copyright. The head of the FTC was the most recent person to state this.
OpenAI could very likely be sued out of existence. When that happens, all who invested in them could lose billions. The US government very likely won't intervene because there are multiple lessons to be learned from this.
Courts are there to enforce the law, regardless of how "amazing" a technology may appear.
Just because the tech is legit doesn’t mean it can’t have a bubble.