[aik]

Hard disagree. You don’t need AGI to transform countless workflows within companies, current LLMs can do it. A lot of the current investments are to help with the demand with current generation LLMs (and use cases we know will keep opening up with incremental improvements). Are you aware of how intensely all the main companies that host leading models (azure, aws, etc) are throttling usage due to not enough data center capacity? (Eg. At my company we have 100x more demand than we can get capacity for, and we’re barely getting started. We have a roadmap with 1000x+ the current demand and we’re a relatively small company.)

AGI would be more impactful of course, and some use cases aren’t possible until we have it, but that doesn’t diminish the value of current AI.

[kllrnohj]

> Eg. At my company we have 100x more demand than we can get capacity for, and we’re barely getting started. We have a roadmap with 1000x+ the current demand and we’re a relatively small company.

OpenAI's revenue is $13bn with 70% of that coming from people just spending $20/mo to talk to ChatGPT. Anthropic is projecting $9bn in revenue in 2025. For nice cold splash of reality, fucking Arizona Iced Tea has $3bn in revenue (also that's actual revenue not ARR)

You might have 100x more demand than you can get capacity for, but if that 100x still puts you at a number that in absolute terms is small, it's not very impressive. Similarly if you're already not profitable and achieving 100x growth requires 1,000x in spend, that's also not a recipe for success. In fact it's a recipe for going bankrupt in a hurry.

[aik]

I have no idea if OpenAI’s valuation is reasonable. All I’m saying is I’m convinced the demand is there, even without AGI around the corner. You do not need AGI to transform countless industries.

And we are profitable on our AI efforts while adding massive value to our clients.

I know less about OpenAI’s economics, I know there are questions on whether their model is sustainable/for how long. I am guessing they are thinking about it and have a plan?

[hyperadvanced]

This is correct, it should burn the retinas of anyone thinking that OAI or Anthropic are in any way worth their multi-billion dollar valuations. I liked AK’s analysis of AI for coding here (it’s overly defensive, lacks style and functionality awareness, is a cargo cultist, and/or just does it wrong a lot) but autocomplete itself is super valuable, as is the ability to generate simple frontend code and let you solve the problem of making a user interface without needing a team of people with those in-house skills.

[bloppe]

This is a relatively reasonable take. Unfortunately, that's not what most AI investors or non-technical punters think. Since GPT 1 it's been all about unlocking 100%+ annual GDP growth by wholesale white collar automation. I agree with AK that the actually effect on GDP will be more or less negligible, which will be an unmitigated disaster for us economically given how much cash has already been incinerated

[Culonavirus]

Oh look, people with skin in the AI game insist AI is not a massive bubble. More news at 11.

[aik]

We’re a regular old SaaS company that has figured out how to add massive value using AI. I am making no statements about valuations and bubbles. I’m actually guessing there is some bubble / overhype. That doesn’t mean it isn’t still incredibly valuable.