Comment So long and thanks for all the circular funding (Score 3, Interesting) 81
Let's recap. First, VC and mega-tech corporate coffers were the sources of unlimited funding. Compute was bought and essentially offered free or nearly free to even the most voracious users to juice usage stats and hopefully disrupt that too-long-entrenched habit people have of, let me check my notes, "using their brain to think." And to do 30% of the job of a person at 5% of the cost, sure, why not! Four to six months ago, those funds started drying up.
Fortunately, there was circular AI "investments" and "deals" between Nvidia, OpenAI, Microsoft, etc, which of course wasn't funding at all, just moving money between multinationals/hyperscalers to double- or triple-count the value of the money as it changed hands and maintain the air of inevitability by sheer scale of AI investment. Sure, it wasn't real value, but it was good enough to (maybe, if SpaceX, OpenAI and Anthropic move quickly) give runway for a few IPOs, and heck, when we're only burning through a few billion dollars a month, what's the harm in placing a bet to own the all future labor value?
But now? It looks the CEOs, boards, and shareholders remember they like their present-day selves more than their future-selves (future me? That guy is basically a stranger!), who are really the beneficiaries of these costly bets. So, with no other funding sources, AI companies have no choice but to charge users for compute directly. So now AI can do 30% of the job of a person at 10,000% of the cost.
I think we all see where this is going.