Comment A.I. Is Still Faking It Till It Makes It... (Score 1) 94
It's all about keeping the hype machine going. Sure A.I. is improving at a very rapid pace. But it is still not anywhere near to the level of the hype. A.I. is a useful tool but all these A.I. companies are operating at enormous losses. None of them have turned a profit. Many consumers of A.I. are finding out the hard way that A.I. token consumption is more expensive than human staffers. They are also finding out that even a 28% failure rate is way too high. SalesForce, Amazon, Microsoft, and now Ford have backpedaled. Soon the investors are going to want a return on investment. Soon the token cost is going to need to be increased. Soon we will be running out of electricity and consumer electronics are starting to feel the pinch of inflated RAM / Storage pricing after Micron decided to exit the consumer market so they could make over a Trillion selling to A.I. data centers. Apple just raised their prices, others will soon follow. Electric prices are going way up and some places are talking about austere measures to conserve electricity. Those states need to jack up the price for the data centers so they can invest in increasing power production.
There are major advancements in semiconductors that will greatly increase efficiency thus reducing electricity costs tremendously. The problem is it costs trillions and takes a decade or more to retool FABs to use the new designs. There are also nuclear reactor designs that are much smaller and a thousand times safer than what was built originally. But the general public fears nuclear. These new designs make it impossible for a meltdown to occur, etc. Data centers are already pursuing nuclear power if they get past the regulatory red tape.
The problem is A.I. is moving faster than the supporting infrastructure can be built. We need to move faster to keep up. There may be a tipping point and the bubble may burst. It won't kill A.i. but the hype will disappear if the bubble bursts as investors see their money is being burned with no return on investment.