I’ve been waiting so long for this, which everyone considers inevitable.
Simply put, there is no viable business model to recoup costs for what AI can do today.
Everything revolves around something wonderful that should happen in the future.
The tide has just started turning. Here and there are hints of Big AI starting to try and actually turn a profit.
I just sold most of my share portfolio, with just defensive stocks left (think supermarkets).
To get more sales, there will be two tactics:
- A price-war for top-tier products and mass tokens. Won’t apply to any AI that is uniquely good at something specific, like writing code
- More and more offerings of free compute, to get people in. The plan is charge them one day
These will be public, they will be noted, and the increasing desperation will be seen. Funding will be taken from one pure AI play (not Meta, not SpaceX, not Google, not Microsoft). And one of those who will certainly survive will the one that fails. Repeat until no pure AI players remain.
The financial losses will be severe and global.