• Jaysyn@lemmy.world
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    4 days ago

    I mean if you were an economist you’d know exactly why AI companies are making massive profits

    They are literally not making massive profits. They may be making lyin’ Sam Altman rich, but the VC money is drying up and OpenAI has repayments coming up in 2027 that it doesn’t have a chance in hell of being able to payback.

    https://www.wheresyoured.at/brokenomics/

    • GalacticRobot@lemmy.world
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      1 hour ago

      You aren’t separating hardware/training costs and costs when the models are developed. Ask the Chinese how thats working out for them, and one of many reasons why their models are so much cheaper.

      • Jaysyn@lemmy.world
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        3 days ago

        Yeah, but they aren’t an “AI company”. They are a hardware company that is propping up AI companies to keep them buying (and warehousing) GPUs via circular financing.