AI bubble
AI is expensive
The biggest AI companies are operating at a loss. For example OpenAI has accumulated $3.7 billion in revenue while accumulating $5.0 billion in debt.[1] Source: https://www.wsj.com/tech/ai/openaiin-talks-for-huge-investment-round-valuing-it-up-to-300-billion-2a2d4327 January 30, 2025 So in a sense, the true cost of AI is about 2.4 times what users actually pay for it.
Companies have tolerated this loss in hopes of winning the race to build the first AGI (or at least reach some lesser breakthrough that could eventually pay for itself).
So what happens next?
Will the bubble pop soon? Should we try anything collectively to make it pop sooner, or just let the market do its thing?
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