By now, it’s clear that the only way the tech industry can justify the cost of AI is if it replaces vast swaths of the human workforce with machines that run 24/7.
The bad news is that this situation has created a world-historic financial market that, by some metrics, is looking worse than the run-up to the Great Depression. The good news is that this future of an AI takeover is looking increasingly unlikely, at least at the industry’s current pace, a fact which is now dawning on some of the biggest rubes and dupes in the corporate world.
According to a new survey from “Big Four” accounting firm KPMG, a significant number of corporate executives are reeling from sticker shock over new usage-based AI pricing schemes. Though enterprises could once count on AI companies to subsidize the price of large language models via flat-rate contracts, that’s no longer a given, as the rising cost of computational power forces the entire tech sector into a defensive posture.
And all of this happens in a starting phase where exactly none of the AI companies are generating profit and they are all still fighting for market shares via heavily discounts.
If costs are far too high to justify replacing workers right now, just imagine the costs once the established market increases costs to levels that actually generate profits for them; ones able to make back the insane investments.
They think that Moores law will make the tech so efficient in such a short time that it won’t matter. This is because they don’t understand that Moores law is effectively dead and stopped being a true thing less than 10 years.
That’s not even the worst part. They also hallucinate that the sudden leap to an actual artificial general intelligence is just a few more upgrades away…