• FrankFrankson@lemmy.world
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    15 hours ago

    It’s how every tech company that “disrupts” a market or indistry works. Uber started of burning shit tons of cash operating at a loss till it replaced enough Taxi services then jacked up the prices.

    The problem with AI is that they cannot increase the prices enough to be profitable. The AI companies are waiting for future hardware tech that will be energy efficient enough to make AI profitable before they run out of capital to burn.

    • jballs@sh.itjust.works
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      9 hours ago

      The problem with AI is that they cannot increase the prices enough to be profitable.

      I saw something about the SpaceX IPO that said for it to be justified at that price, everyone on earth with some sort of money (they defined it as earning at least $14,000/year) had to become an xAI consumer and spend $28,000/year. Seems reasonable /s