Big Tech is cashing in on AI while the rest of corporate America sees no financial returns — report outlines how rising token costs threaten to squeeze corporate profit margins.
https://www.tomshardware.com/tech-industry/artificial-intelligence/big-tech-is-cashing-in-on-ai-while-the-rest-of-corporate-america-sees-no-financial-returns-report-outlines-how-rising-token-costs-threaten-to-squeeze-corporate-profit-marginsOpen linkView original on lemmy.world
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Tech companies? Maybe Nvidia. But all the companies buying their hardware (on loans) are they actually making any money?
Giant traded companies desperate to not be left behind by share holders didn’t see gains. To anyone not being a moron and replace devs and using it to make them faster, it’s blatantly obvious there is an increase in net work.
We’re getting more done than ever and everyone on my team works a lot less. We’re only on $50 a month copilot and it’s a no brainer. The real question is where x and y cross. A $200/mo worth it? 400?
Come on, bubble! Burst!
Did businesses think the AI companies were going to share any benefits lol
No shit? Breed dependence, then squeeze. That has always been the playbook and business idiots keep falling for it.
Now instead of squeezing your workers you get fucked by Silicon Valley. If you bent over for that, all I can say is enjoy that 6 foot cock of consequences, assholes.
And longer term learn all about those companies as every secret ends up in AI to make a cheap agent run competitors that undercuts the original company.
The AI revolution has achieved its first miracle: turning everyone else’s operating budget into Big Tech revenue. Corporate America gets an expensive chatbot, executives get a slide deck about ‘transformation,’ and Nvidia gets actual money. Turns out the only reliably productive AI workflow is billing the customer.
I think it's simpler than that. I think the AI snake oil sales people realized that corporate executives want to give themselves bonuses. And if you propose this magical technology, that's going to change everything, they can pretend for several years but it's actually going to change everything, and pay themselves a lot of money in the meantime.
It's greedy people relying on other greedy people so that some of them can get richer.
No, making the customer think they've got the magic bullet doing all they need is a valid one too. The only problem is that it's repeating a job already done in areas where you need to do jobs not previously done, ideally. It's very useful for all wrong applications of tech where it was honestly not needed (things easily repeatable done by people who are honestly not that much smarter than haircutters). It's useless for the skeleton applications.
It's a very smart Ponzi scheme, one where much of the funds collected gets spent on maintaining real usefulness, at least visible one. Unlike most Ponzi schemes, it's able to achieve unimaginable scale due to that.
Like, say, plague has low survivability rates, and doesn't spread too easily, meaning that it's not very dangerous in the modern world. While a disease with very high survivability rates and easy spread has far bigger reach. Or a very slow incubation period with carriers being infectious long before detection.
OK, I suppose everyone likes Plague Inc.
IRL it's no good as something everyone uses, because current token costs are subsidized and because what's solvable with it for most people is what's been done many times before.
When things balance out, I'd expect token costs to be like 4 times what they are now. And people using these things to be mostly engineers.
Same as it ever was.
And the billionaires take in another billion or twenty.