Now you can keep track of how many billions the AI companies are losing on AI.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan
"We'll make it up in volume!"
@jwz -
Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
seeing amazon at the very top is both surprising and funny considering they don't even have a public ai product that i know of
I guess the companies losing the most are the ones actually building the datacenters, with the expectation that eventually usage will be so high that openai/anthropic/whoever will eventually be able to pay them back in rent?
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S simonjust@mstdn.dk shared this topic
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan It would be interesting to see IBM, SAP and Salesforce also in this dashboard.
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@julesbl @PaulaToThePeople @MikeElgan
Yes, that might become interesting ... Snake choking on its own tail ... Or rather its own excrements.
Perhaps new models of monetization? Content sweatshops (well, we kinda have those already)?
The degradation already shows ... The web drowning in its own slop.@sebastian @julesbl @PaulaToThePeople @MikeElgan Can't personal websites help with that?
Genuinely asking, not trying to be a smartass. I know the outlook isn't good, just thought that people should do their part individually as well.
I know creating and maintaining content isn't easy, nor cheap. But perhaps what the internet lacks is more people making simpler websites with real content. An interconnected yet decentralized/independent web of real content, like we had in the past.
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@sebastian @julesbl @PaulaToThePeople @MikeElgan Can't personal websites help with that?
Genuinely asking, not trying to be a smartass. I know the outlook isn't good, just thought that people should do their part individually as well.
I know creating and maintaining content isn't easy, nor cheap. But perhaps what the internet lacks is more people making simpler websites with real content. An interconnected yet decentralized/independent web of real content, like we had in the past.
@sebastian @julesbl @PaulaToThePeople @MikeElgan I myself have a couple domains for a couple of years and only recently started writing small articles/essays. It is not much but it is nonetheless a fresh cup of water in a vast desert of disinformation and slop.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan that can't be right, OpenAI look like they're not entirely setting money on fire. I guess they have some very creative accounting tricks to make it look like they're only half going broke.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan nice
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@MikeElgan wait a sec, are you saying Elon might be the smarter one here ?
xAI's ratio seems to be even worse than Meta's although the actual numbers are better than most.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan I don't think that those companies would spend so much money, with such little short term return if it did not make sense to do it.
What do you think will be the longer term return? Is this a combined competitive loss? Are they each compelled to do this? It seems like a lot but, are any of these companies going broke on this?
What is the end-game here?
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan Is there any information on lifetime of these data center racks and cost of replacement? How is Moore's law on these Nvidia GPUs? If this stuff is getting superseded within a few years, are their capex forecasts allowing for that? It seems like a fresh competitor with more efficient algorithms and new generation of hardware could kill here. More deep seek type events etc.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan Burn, baby burn.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan And yet there's no sign of the shareholders suing the directors for failing in their fiduciary duties, which I presume means the shareholders are bent as nine bob notes too.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan CLiMatE cHanGE MitiGatION is ToO ExpEnsIve, We CAN't!
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@MikeElgan I don't doubt that they will get all that money back, by selling it to the public, business, or get all the public's money by selling it to the government.
History has enough examples.@azad @MikeElgan or by becoming so large (on paper) that when they fail the government pays out to prevent total collapse of the stock markets. We the people are left footing the bill even though we were collectively fighting against it the whole time.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan there are a few other winners like TSMC and Micron etc. In fact when you add all the economy propped up *by* this ai foolishness you get a huge bubble that's the primary thing keeping the markets afloat. Once AI companies finally fold under the pressure, I strongly suspect the rest of our economy to go down like a sinking ship, especially in the west.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan Some of these companies rely only on AI, while others have a diversified business. I think this will make a big difference in the long run
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan Amazon, Tesla and many others weren't profitable for decades.
Now they are run the world.
They just try to achieve the same thing. -
@MikeElgan that's a great visualisation. So #Nvidia is the only company shown that is profiting. I wonder which other sectors or companies are raking it in. I was thinking cloud, but look at Amazon. Surely some are profiting? And
to see where the funding is coming from.Also, I hope he'll add a time based graph so we can watch the trend, but this is awesome.
@happyborg @MikeElgan construction industry (data centers), no one else
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan in a gold rush, sell shovels
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The Internet was losing money for at least 20 years.
@n_dimension @MikeElgan In case someone honestly believes this (and this isn't read as the obvious joke about AI-bros saying similar things):
The internet basically was never losing money, it enabled researchers to communicate and compute things way faster than before when they needed to send out mail and tapes manually. The amount of value their faster research created is basically immeasurable.
Also of course the internet wasn't burning our planet alive to work.
