Those who think Gary Marcus, Ed Zitron and Yann LeCunn are wrong, and believe in AI: How do you reconcile things when AI thinks the market is highly likely to collapse?
Quote: "The entire system only works if AI revenue grows fast enough to outrun the obsolescence treadmill. For that to happen, Microsoft would need approximately $130 billion per year in new AI revenue, Google $100 billion, Amazon $120 billion, and Meta $70 billion. Against a current reality of $18 billion in total industry AI revenue and zero profits, that gap is not a rounding error. It is the entire bet."
I made this comment half a year ago as well, but i believe AI is going to bring down the profitability of the big tech companies by a lot.
Instead of massive scaling advantages which has given software its extreme valuation, it now hit on something that is almost a perfect commodity. Energy and depreciation are easy to calculate and its subject to global competition.
Great for consumers, less so for people looking for a ROI.
Substantive issues with this submission aside, it’s a mistake to have such long conversations with an LLM. The longer they go, the more likely they are to accumulate errors. The latest models all claim to be able to handle long conversations, but in my experience they still don’t do as good a job as just pasting your conversation into a new thread.
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[ 2.7 ms ] story [ 27.1 ms ] threadQuote: "The entire system only works if AI revenue grows fast enough to outrun the obsolescence treadmill. For that to happen, Microsoft would need approximately $130 billion per year in new AI revenue, Google $100 billion, Amazon $120 billion, and Meta $70 billion. Against a current reality of $18 billion in total industry AI revenue and zero profits, that gap is not a rounding error. It is the entire bet."
It is not magic, it is not an oracle, it is not good at analysis, and is particularly bad at predicting the future.
b) in my observation, the longer context window, the more unhinged/pessimistic LLM output becomes
The numbers are bad therefore it will collapse.
Instead of massive scaling advantages which has given software its extreme valuation, it now hit on something that is almost a perfect commodity. Energy and depreciation are easy to calculate and its subject to global competition.
Great for consumers, less so for people looking for a ROI.