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by cmiles8 17 days ago
Honestly that’s the trap that’s increasingly looking like it will blow up this whole thing. Nobody can point to any viable revenue pathway that justifies the amount of capital investment underway, all while folks are increasingly slamming the brakes on things.

Theres an extremely ugly financial picture developing that those with full blown AI psychosis appear unable, or simply are unwilling, to see.
1 comments
treis 17 days ago
Of course they can. They're going to sell ads and subscriptions. Both of which are going to make bank. That their service is wildly oversubscribed and hence expensive is not an indication that they're in economic trouble.
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cmiles8 17 days ago
No.

Ads are a zero sum game where there’s only so much ad money to go around. AI doesn’t grow the pot. Google isn’t going to lose the ad game, it would destroy them. Google got scooped early on with AI search but is roaring back now.

Also consumers won’t pay high amounts for subscriptions, that’s enterprise territory which doesn’t tolerate ads. And these are the folks now slamming the brakes on spending.

Net, “ad revenue” is not even close to a viable plan to save the present train from spectacularly flying off the tracks.

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treis 17 days ago
ChatGPT has like a billion weekly users that are giving them a massive amount of data. Everyone is going to want to advertise with them.

Enterprise isn't slamming the breaks on spending. At worst they've transitioned from spending like drunken sailors to spending like mildly inebriated sailors. Every single white collar worker is still going to have an AI subscription. And for people like programmers they'll still spend $1k on them.

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