684
AI bet goes awry: Oracle fires 21,000 employees (www.jpost.com)
submitted 2 months ago by to c/technology@lemmy.world
158 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[–] 1 point 2 months ago (2 children)

If the valuation were based on the marginal cost OpenAI and Anthropic would be worth negative a trillion dollars...

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 1 point 2 months ago (1 child)

    Current marginal cost is certainly negative.

    The expectation is that development costs will get cheaper (model design solidifies), Training costs will get cheaper (no need to retrain the whole model) and running costs will get cheaper (datacenter economies of scale).

    All this is still true.

    OpenAI, anthropic, Google etc. will generate excessive by being able to charge more than cost because their models are vastly superior.

    Is likely to be false.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
  • [–] 2 points 2 months ago

    Datacenter economies of scale do not seem to be panning out, 'cause they're buying into a RAM cartel who knows they're desperate.

    Coreweave's reports say that the GPUs are 85% of the cost of a data center, and that they'll last 6 usable years. This isn't like building a facility like TSMC, datacenters feel more like COGS than capital to me, and those aren't businesses I would want anything to do with even if I didn't think they were all run by conmen who are rapists or racists or both.

  • permalink
  • fedilink
  • source
  • parent