I, For One, Welcome Our New Self-Driving Overlords

AI 13 Comments

Via Instapundit; OpenAI’s financials leaked, revealing $21 billion in losses against $13 billion in revenue.

“Is there a path to profitability? Maybe. OpenAI’s two biggest expenses are R&D and marketing. Budget cuts there, coupled with an ability to raise prices or win new sources of revenue, could see the company move into the black over time. Cutting R&D would be the most difficult part of that, given that AI companies can only hold onto their customers by generating the best-performing models.”

Ed Zitron was the leakee., with followup commentary here.

You know, people like to talk about the costs to taxpayers from abandoned wells. Nobody’s talking about the costs of abandoned data centers.

13 Replies to “I, For One, Welcome Our New Self-Driving Overlords”

  1. Laser tag arenas in the middle of nowhere. Luckily, Mr. Zitron has also revealed that basically zero of these things are actually getting built..

  2. $8,000,000,000.00
    poof !!!

    ouch.

    be prepared for price hikes to make up the loss.
    aint that how its dun? l see how AI will destroy civilization, first, suck trillions in investment from more sensible, beneficial projects. then, when things are crappier than the last 200 years, hit them with utter absolute total slavery to the digital processor.
    then, to quote mayor wilson, “bye”.

    2. They’ve been selling AI use by subscription, and users are paying for only a minor fraction of the tokens they’re consuming, which cost money. A version of giving out drugs on the playground to get them hooked. Uber burned through their year’s worth of tokens in just 4 months. I wouldn’t be surprised if this is buried under “Marketing”

  3. Ed Dowd and others have been speaking to the Square The Circle Financials of the AI industry for months, declaring that the Math Doesn’t Math.
    Once again, he nails it. AI will have casualties soon.
    Think dotcom bubble.

    1. Totally Agree – The Stock Market has a destiny with a crash no later than the end of next year and it should be one for the ages. I get some incredibly dumb answers from AI. Whether they call these answers hallucinations or horse shit makes no difference.

      Space X will be a great company. Amazon crashed 90% in 2000-2002 From $113.00 to $6.00 and then exploded. Look for the same in Space X and other tech companies.

      The trigger for teh crash is irrelevant whetjher a Black Swan (an unpredicetd event) or Gray Swan (a Predicted event with the timing uncertain)

      The funniest tyrigger would be that Open AI can’t remotely go public because no one is dumb enough to buy it so it becomes a failed Unicorn IPO.

      1. Calling for a “crash” is a fools game.
        Many have been making this guess for over a year now, based on valuations and traditional rulers of company health. However inflation and a loose money supply, and perhaps, a “hidden hand” propping up markets will likely prevent or mitigate a market drop.
        Guessing a crash is akin to broken clock/blind squirrel syndrome. Sooner or later it could happen, does that make one ‘right’ or just a matter of the odds catching up, “it’s going to rain soon, just watch! One of these days, I guarantee it!”
        Listening to Ed Dowds’ reasons and Martin Armstrongs are different versions of the same guessed event. Does it happen? There are no guarantees, however, it’s pretty clear, there are behind the scenes forces that keep moving this market higher and higher when it should have corrected several years ago.
        It’s not allowed to fail. Money printing ensures it finds its way into the market First.

  4. Hey ChatGPT, is AI really just another form of money laundering?

    Jim, let’s get the hell out of here. Two to beam up Scotty.

  5. I keep expecting the AI stock bubble to burst, and perhaps carry the rest of the market down with it.

    This is why I never short. The market can stay wrong far longer than I can stay solvent.

  6. “two biggest expenses are R&D and marketing”

    Marketing: it is hella expensive to polish a turd.

  7. Well … the government is FORCING us to drive EV’s … even self-driving EV’s … so they’ll also FORCE us to use their chosen AI platform. The government subsidizes our enslavement. Not to worry about AI profitability. We will ALL pay for it. Good and HARD..

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