So far, AI is a money pit that doesn’t pay off

Picture: jamesonwu1972 (Stock shutter)

Silicon Valley has bet on productive artificial intelligence, but it’s not entirely clear whether the bet will pay off. A New report The Wall Street Journal claims that, despite endless hype about big language models and the automation platforms they power, tech companies Trying to make a profit on artificial intelligence.

For example, Microsoft, which has bet billions of dollars on the boom in artificial intelligence Invested in its partner OpenAI, has lost money on one of its main AI platforms. Github Copilot, which launched in 2021, was designed to automate some parts of coders’ workflows, and while it’s popular with its users, it’s taken a hit, the Journal reports. The problem is that users pay $10 a month for Copilot, but according to a source interviewed by the Journal, Microsoft lost an average of $20 per user in the first few months of this year. The source told the newspaper that some users lose an average of more than $80 per month.

Other platforms are facing similar financial problems. For example, ChatGPT has OpenAIs We are witnessing an increasing decrease in the number of users While its operating costs remain extremely high. A report from the Washington Post in June claimed that Chatbots like ChatGPT lose almost every time a customer uses them.

reasons Why artificial intelligence businessss is trying to be diverse, but one thing is well known: AI platforms are very expensive. Platforms like ChatGPT and DALL-E burn through one enormous The amount of computing power and companies are trying to figure out how to reduce it. At the same time, the infrastructure to run AI systems, such as powerful and high-priced AI computer chips, can be very expensive. Meanwhile, the cloud capacity needed to train algorithms and run AI systems is also expanding at breakneck speed. All of this power consumption also means that the AI ​​is roughly the same size Incompatible with the environment As you can get.

To get around the fact that they have a lot of money, many technology platforms are experimenting with different strategies to reduce costs and computing power while still delivering the kinds of services they promise to customers.

Still, it’s hard not to see the whole thing as a bit of a shakeup for the tech industry. Not only artificial intelligence A solution in search of a problem, but it also quickly becomes a problem in the search for a solution. Companies need to understand how these tools create both an economic and a strategic dimension that probably should have been lost before they were launched.

#money #pit #doesnt #pay
Image Source :

Leave a Comment