• droopy4096@lemmy.ca
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      26 days ago

      use their cheapest plan, burn their tokens, burn the hole in their budget. could backfire though as then “clever analysts” will claim that demand is up and eager bankers will shell out more cash

      • RedstoneValley@sh.itjust.works
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        26 days ago

        Or educate the people around you that “AI” is not the magical fairy dust machine that can do anything imaginable. Might be better than giving them any money at all.

        • MrKoyun@lemmy.world
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          25 days ago

          educating people doesnt work very often. people do not give a shit about what’s going on inside or behind of their glowing rectangle machine.

      • boonhet@sopuli.xyz
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        26 days ago

        The most expensive plan gets you more tokens per unit of currency actually (10x cost for 20x usage), but it’s pretty expensive and there’s not actual guarantee that they’re still losing money on your subscription in 2026 and as you pointed out, being able to show demand and MRR will get them more loans.

    • neutronbumblebee@mander.xyz
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      26 days ago

      Look to your superannuation plan. Most providers have a conservative plan that’s little or no shares. If lots of people transfer the message will be loud and clear. At that point the markets will dump AI and things will eventually normalize. I suspect this is already where the elite have their money, given the present warnings.

    • moustachio@lemmy.world
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      26 days ago

      Better start preparing to grind the economy to a halt when they try it. This time any occupy Wall Street movements should be heavily armed and wearing plate carriers

    • Windex007@lemmy.world
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      26 days ago

      Counterpoint:

      They already are losing money. They themselves do not project that they will be profitable until 2030. The idea that “smart people with spreadsheets won’t let them lose money” is obviously wrong because they have done nothing except lose money, ever.

      They get thier operating capital from funding, not sales.

      Now, I agree that the gambit is wrong. So you’re right. You’re just right for the wrong reason.

      Funding is just the cash value of market optimism for the future of your product. High usage props up optimism. Social media IPOs were valued very much based on active users, the idea being that more users meant more opportunity for profit.

      The more people actively using these tools, even if they’re just maliciously burning tokens, just add to the “active users” metric. Which makes funding easier. And funding is the ACTUAL way these companies “make thier money”.

        • Windex007@lemmy.world
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          25 days ago

          Yeah, I conceded that your call to action was correct.

          Just wanted to add colour so people understand the mechanics at play. When you understand them, it lets people evaluate other things, without needing you to tell them what to do.

          For example, if your comprehension of these companies is that the companies are acting with the goal of profitability l, they would see something like a fast-track onto an index post IPO as a bid for legitimacy, some kind of ego play.

          If you comprehend it as a beast that can only subsist on funding with no viable product, it entirely changes how you comprehend the post IPO index listing desire.

    • UnderpantsWeevil@lemmy.world
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      26 days ago

      Despite the popular fantasy, the rich and powerful are not stupid.

      Uh… famously untrue. Mental illness has plagued monarchs, pharaohs, and caesers for millennia. That’s long before you get to all the quirked up white boys and trad rad girl bosses currently running things.

      You don’t know more about a company or market from passively consuming headlines than the leadership of that company.

      Okay, but you can review their balance sheets and their primary lines of credit. Case in point, Sam Altman is heavily reliant on three big financial partners - Softbank, Oracle, and NVIDIA. Two of these are - themselves - hemorrhaging money thanks to large capital outlays that have failed to produce substantive returns.

      There are finance journalists who get out ahead of this and report their own analysis. And you can find that in a thousand different private journals, substacks, and podcasts. But you can also go do the grunt work yourself if you’re ambitious.

      OpenAI’s financials have been disclosed already (although the official SEC filing is still upcoming). So… just read them if you doubt what you’re reading in the news. But it’s not some kind of secret that the business is operating at a loss, with a fixation on debt-fueled growth. The argument is over future projected revenue, which isn’t something business leadership can be any more certain of than a passive media consumer.

      I definitely get the knee-jerk impulse to announce “business professionals know more about business than internet idiots”. Because, sure. True. But the idea that business professionals don’t routinely make bad decisions has some pretty historic well-established counterpoints.

      “The business people know more” line is akin to saying “This used car dealer must know more about the vehicles on his lot than I do, so I can trust him”.

        • UnderpantsWeevil@lemmy.world
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          26 days ago

          Regardless, it should be fairly obvious that giving a company you hate money will not cause them to fail faster.

          I’ll concede that trying to soak Altman for $14k/mo when he’s already hemorrhaging billions is a bit like pissing in the river.

          I might ask what you plan to do with the $14k in tokens you’re burning. If you’ve got a material use case for them, and Altman wants to sell you $20 for a nickel, go wild.

          But half the joke of AI is that you’re burning tokens to do nothing. That’s why businesses recoil as soon as they’re asked to justify at-cost AI spend.

    • non_burglar@lemmy.world
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      26 days ago

      Despite the popular fantasy, the rich and powerful are not stupid.

      Hubris is what the rich and powerful suffer from, not stupidity. And hubris makes the same blind decisions as stupidity.

    • DupaCycki@lemmy.world
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      25 days ago

      The leaders of the companies are not stupid. If they started seeing a net loss from their sales strategy, they’d change strategies.

      Unless money is not the goal. Not the sole goal at least. As you said, they’re not stupid. It’s entirely within reason to assume they may be aiming for more than just money.

      Who knows what they’re planning. Nothing good for us - that’s for sure.

  • arc99@lemmy.world
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    25 days ago

    I will happy when this bubble bursts. OpenAI, Grok and several other companies offer nothing substantive and if they’re burning cash and disrupting economies then just die already.

  • Treczoks@lemmy.world
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    26 days ago

    It will be a race which AI company holds out longest. All of them are making losses that no company can survive, and if they rise their prices enough to cover the costs, they will basically lose all their customers. Who will then struggle to hire the people back who still know how to do things without AI.

    • Auli@lemmy.ca
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      26 days ago

      Then Google wins? Since they have the ad business sonar least they are making some money.

  • muusemuuse@sh.itjust.works
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    26 days ago

    Doesn’t matter. The regime got what they wanted out of this. The data centers are up, the tech is there, they will just snap it up cheap for use in surveillance and fabricating evidence of dissenters.

    • Chulk@lemmy.ml
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      26 days ago

      The datacenters largely aren’t built yet, as someone else pointed out. That doesn’t even matter though, to your point.

      The Epstein class has successfully destroyed large portions of the Internet through bot traffic. They’ve scraped virtually all human contributions and stolen it, while ruining traditional vehicles for information gathering. They’ve eviscerated consumer hardware, and thus shifted control of compute away from the masses. They’ve successfully manufactured consent for mass surveillance including harvesting our biometric data.

      Once the AI bubble bursts, it will be one of the largest transfers of wealth in history as they force us to bail out this fradulent industry. If it doesn’t throw us into another great depression, the damage it will do will ensure that things never go back to how they were pre-AI. Once that reality becomes apparent to the masses, they’ll be primed and ready for Peter Theil’s vision of “Freedom Cities

    • chiliedogg@lemmy.world
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      26 days ago

      That’s how they’ve been operating for years. They’ll go public soon enough though, so your 401k will take the hit instead of the parasites on top.

      That’s what the SpaceX IPO was about. They were listed on the NASDAQ way earlier than companies are normally allowed to be so the assholes up top could raid your retirement fund despite there being no path to profitability.

      • moustachio@lemmy.world
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        26 days ago

        I can’t fathom how people actually contribute to a 401k when it’s run by Wall Street ghouls that stole everyone’s money 20 years ago and never suffered any consequences for it…

        • baggachipz@sh.itjust.works
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          26 days ago

          Because that’s the game. If you don’t play it, they continue to make more and more, while your money decreases in value due to inflation. Best you can do is try to be the bird in the rhino’s back, picking up fleas and scraps.

  • anon_8675309@lemmy.world
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    26 days ago

    That long? Sigh…

    He’ll probably tell Trump he’ll help win the election and get all sorts of tax payer handouts.

  • Corkyskog@sh.itjust.works
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    26 days ago

    Q3 2027 is when the house of cards falls. I have been saying this since 2025 and I will continue to make this prediction based off of loan and investment terms.

    • brucethemoose@lemmy.world
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      26 days ago

      I agree with this.

      That lines up on the technical side, too, with how LLM “intelligence” is plateauing, cost of cheaper models is decreasing, where open weights are going and such. Q3 2027 seems about when an OpenAI coding subscription makes no sense.


      That being said, I’d be wary of the “Facebook effect.”

      Once a service gains a huge foothold, it can deteriorate for a long time without going away. Especially with regulatory capture. And for many smartphone users, OpenAI is the only AI they know.

      • Jaysyn@lemmy.world
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        25 days ago

        The difference here is OpenAI has no revenue, Facebook has plenty of advertising revenue.

        • hark@lemmy.world
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          25 days ago

          That’s where advertising through AI comes in. People relying on AI suffer from cognitive deterioration which is the perfect opportunity to sneak in advertisements disguised as suggestions through AI responses.

  • HugeNerd@lemmy.ca
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    26 days ago

    Can’t be soon enough. The amount of AI sludge videos out there where I can’t even tell anymore.

      • HugeNerd@lemmy.ca
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        25 days ago

        There must be many others. The amount of videos depicting things I’ve NEVER seen before pawned off as real is disconcerting. A dog bouncing a 3 foot exercise ball on his nose in a backyard? Yeah, that really happened.