Do they dupe VC into enormous datacentre and capacity build-out investment? Why yes, actual money going to the AI hypester pick-axe vendors (and early equity dumpers) in that sense, absolutely yes it does.
Is Big AI on track to pay that back with profit from any foreseeable and defensible business model? Different question. I sincerely doubt it.
I think one of the more sober analysis that focused on danish firms exclusively predicted the overall growth impact on GDP to be a bit less than half a percent. Now, well that doesn’t sound very large, considering nominal GDP for the world is nearly $60 trillion, that is a big deal. I don’t know if that justifies trillion dollar evaluations for the providers, but even a small improvement over a large base is meaningful.
Conservative estimates in the United States puts it at $300,000 to raise a child from 0-18, including the cost of birth in the healthcare system. It goes up to $1 million for a HCOL area though.
This seems wrong to me on multiple different levels.
One, this conversation is about economy side of things.
And two, calling comparison between humans and LLMs disgusting when LLMs are borderline GAIs sounds very xenophobic. Did you see the thread about LLM-written fiction contest the other day? https://news.ycombinator.com/item?id=48782890
Is Big AI on track to pay that back with profit from any foreseeable and defensible business model? Different question. I sincerely doubt it.