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[-] chahn.chris@piefed.social -2 points 23 hours ago

Currently reading Enshittification.

AI will make money, it’s currently in the make users happy stage which is the least profitable but most important lock in stage.

Stage two comes post IPO when they shift value from users to businesses. They will start printing lots of money at this point.

Stage 3 is where they start to squeeze everyone to their own benefit and start generating cash to the moon and everyone bemoans how they miss the old days of answers without product hints or other nonsense and husinesses miss the old days when they could do anything on top of AI that could make a profit.

Don’t worry, it’s coming, AI stocks are going to drop post IPO because of a surplus of hype and cash but mid to long term they will go crazy high as stage 2 and 3 come online.

This has happened so many times with new tech, it will happen again. Don’t bet against it.

[-] Feyd@programming.dev 3 points 10 hours ago

The existence of enshitification isn't an argument that every attempt to make something profitable via enshitification will succeed.

[-] Tollana1234567@lemmy.today 1 points 15 hours ago

they havnt been making money since 19-'23, if they havnt made any in that timeframe they wont make any now. especially since openai has been operating for the last 10 years.

[-] qaeta@lemmy.ca 6 points 22 hours ago

AI will make money, it’s currently in the make users happy stage which is the least profitable but most important lock in stage.

Stage two comes post IPO when they shift value from users to businesses. They will start printing lots of money at this point.

The problem is, they're starting to run out of real money. They're having to start jacking rates up already, before the IPO stage. They thought it would monetize more than it has, and they didn't have enough runway to make it to stage 2 before they started enshittifying.

[-] lemongarlic@lemmy.world 3 points 19 hours ago

Will it? The cloud models have to fight with the cost of third parties hosting Deepseek and other open weight models.

[-] ricecake@sh.itjust.works 2 points 20 hours ago

The thing is they're currently trying to sell as a business oriented tool. They're not going to make money off of individuals.
Google is positioned to come closest because they're already an advertising company.

If you think their focus isn't businesses then you're not paying attention to their strategy. The pressure to drive profitability is increasing as their business customers are reporting that investment in AI capabilities isn't converting into measurable financial returns. That's the type of news that makes investors wary.

If you operate at a loss, you need to be providing a value to your customers that you can leverage. You need more than high interest, you also need demonstrable utility.

There have also been plenty of times that a new technology just ... Didn't pan out. This specifically happens with AI technology, and we even have a term for it: https://en.wikipedia.org/wiki/AI_winter The tech won't go away, it'll just be market infeasible for a while until it's no longer called AI and is just a feature in some other product.

Take your comment and apply it to someone marketing "spell check as a service".

[-] ReasonablePea@sh.itjust.works 2 points 22 hours ago

Or they don't make it to stage 3. There's no reason they are guaranteed to succeed. I'm not saying that is what I expect to happen but it feel weird to me that this is so matter of fact

Though they're should always be people in support of stuff to succeed so I don't blame you. But there are a lot of tech solutions that didn't make practical sense in a global revolution kinda way. Think of all the hype around VR just a few years ago.

this post was submitted on 06 Jun 2026
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