I'm guessing the lost funds are bleeding out to energy concerns. Correct? Asides from brief construction contracts for data centers, I'm unsure how one makes such large sums of money disappear.
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Goddamm... This could easily have housed every man, woman, and child in this country. But no, no free housing while we squander wealth with our stupid ideas.
Billion is officially the new million.
this goes in line with thier aggresive pandering to the govt to be used mass surveillance.
I'm doing my part by constantly asking chatgpt questions without ever logging in or paying them money. Eventually they'll all go belly up and maybe we can ditch this shit.
80 billion could have bought a whole lot of Chinese EV's to resale and they could have made a profit.
Forget resale, for 80 billion you could probably get BYD to produce custom vehicles under your own brand.
I'm totally spamming this across the thread with copy/vaste.
A billion here, a billion there. Over some time it might become quite a sum.
Repeating the DotCom burst.
but worst. because some of those sites provided actual value, "AI" does not, most heavily used by Palantir/AI as mass surveillance and profiling people for bombings or harrasment.
$8B real loss on $16B revenue. ($72B is a bondholder gain (accounting loss) from conversion). $9B in training costs not counted as loss, even though it is worthless whenever next model version is released.
$561B in forced spending on compute over next 10 years, with $750B total compute costs lined up. Structural losses are baked in for a few years.
even though it is worthless whenever next model version is released.
For most version releases I actually doubt that, I'm pretty sure they just keep training the model and release checkpoints every few months. Architectural changes, however, will indeed invalidate the previously trained models, and occasionally they have to do that to keep up with the competition.
But if you do architectural changes even just once a year, that means you'd have to depreciate those training costs over just that one year to be truthful. Meaning they might as well be losses rather than depreciating capital investments.
There is a genuine "training corpus" that is an accumulated asset and grows and feeds new models. The vast majority of training cost, that should be expensed, is the training time compute. Neither of these are expensed. There was about 13 major US model releases in September. At least 7 of these replaced a 1 month old previous model family. Open AI gpt sol went from 5.6 to 6 to 6.1 in about 2 months.
Fast model releases not only lock in structural losses, they juice revenue growth illusions. Model use rate generally drops by 66% 4 weeks after release, because of competition, and a surge of use on release for evaluation.
But, when the word guessing program gains consciousness, it will be capable of doing the job of every worker in the world, and eager to do those jobs, and anybody who owns Anthropic shares will be a trillionaire in an economy that totally works and is healthy. So, better invest now!
No wonder they're panicking so hard over open weight Chinese models
I firmly believe OpenAI, Anthropic, etc., will all eventually collapse under their own weight, meanwhile open weight distillations of their models will become the de facto standard for AI usage. There's just no way they can ever make up all the money they've burned in R&D, especially when distillations are right behind them.
they have to pay off those datacenters somehow, the only one whos partially laughing to the bank is jensen.
Idk man, to me, it feels like we are further from AGI than fusion reactors actually being hooked up to the grid, considering LLMs are still just glorified autocorrects, needing a ton of prompt injections from their providers. And yet, the AI companies make it seem like it's right around the corner (obviously, because $$$), whereas to me it feels like we are still at least 50 years away. Maybe AGI will be the next fusion generator chase.
Why haven't they just asked Claude how to make money with their business model? /s
They have.
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Wait for excited CEOs to fire all their staff.
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Crank up the prices.
2 only works if regulatory capture in place to prevent cheaper competition from open models.
That's why they keep trying to play the "AI is so dangerous" narrative and why you keep hearing about "rogue AI agents" which in reality someone had to instruct to break the law, and they probably used some of their no-guardrails internal-use models (so Claude Mythos rather than Fable).
If any of these AI companies IPO, you could make a lot of money shorting them!
Spacex really changed the game, forcing the markets to load up that ish in our 401(k)'s.
Next, when Musk threatens to "gift" every child spacex stock in their Trump accounts, it's another form of using the general public as an exit , well artificially propping up the moonshot companies stock values.
It is a Master Class in forcing volatility into the financial lives of not just retail investors but Main Street people.
In old days, but there are so many random retail investors in the market now keeping garbage stocks afloat. Same reason why Tesla is so over valued and why GameStop won’t die.
Nowadays, stocks are made of fairy dust and wishes. It’s all nonsense when fanboys get involved.

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