Sources and leaks from Amazon, Adobe, Atlassian, Citi, and more show what is really happening with AI right now: companies are trying to rein in AI use as costs spiral out of control.

  • yesman@lemmy.world
    cake
    link
    fedilink
    arrow-up
    48
    ·
    4 days ago

    Curious to see how it works out when the AI companies need to grow exponentially to be profitable while their biggest customers are cutting back.

    • Mirror Giraffe@piefed.social
      link
      fedilink
      English
      arrow-up
      1
      ·
      21 hours ago

      Yeah. Unless an efficiency miracle happens or the tooling improves to such extent that the end product is worth the cost this bubble will pop shortly. The fact that the LLM companies are losing money on every token sold makes it hard to believe that they are looking to adjust prices downward anytime soon.

      I presume that if there are use cases that the LLM is extraordinarily capable of that makes it more efficient than the standard procedures that could be what drives LLM usage forward. From what I’ve heard a lot of document normalisation has LLM in it’s pipelines and probably there are other areas that can take a price hike but I doubt it’s enough to justify the data center boom.