And even if they solve some problems with AI and make them smarter, they still have to solve the “actually making a profit” problem to justify these share prices. LLMs already have some use at their current level, but certainly not for the price they’d need to charge to break even, let alone actually making a profit. If they double the smarts but double the training and/or inference cost, they’ll still end up in the same place.
I read a stat that if the true costs of AI was past onto users it would 42 times more expensive or something along those lines. Who know the right number, but it is obviously out of alignment with the value AI is able to bring today. Imagine instead of $20 / month it was $840 / month to just break even.
Funny thing is even that number would be based on all the people who can pay 20 but not 800. If it all has to be balanced by the users it would probably be an order of magnitude… Or the market would play like it logically should and it would be like 3 companies paying a million a month. But what would they do with it? Sell it at a loss for like 20 per user and hope they figure out some way to make money :)
And even if they solve some problems with AI and make them smarter, they still have to solve the “actually making a profit” problem to justify these share prices. LLMs already have some use at their current level, but certainly not for the price they’d need to charge to break even, let alone actually making a profit. If they double the smarts but double the training and/or inference cost, they’ll still end up in the same place.
I read a stat that if the true costs of AI was past onto users it would 42 times more expensive or something along those lines. Who know the right number, but it is obviously out of alignment with the value AI is able to bring today. Imagine instead of $20 / month it was $840 / month to just break even.
Funny thing is even that number would be based on all the people who can pay 20 but not 800. If it all has to be balanced by the users it would probably be an order of magnitude… Or the market would play like it logically should and it would be like 3 companies paying a million a month. But what would they do with it? Sell it at a loss for like 20 per user and hope they figure out some way to make money :)