Where's Your Ed At

Ed Zitron argues that the AI industry's focus on theoretical job displacement and productivity gains is a deliberate distraction from the real economic problem: the staggering gap between AI investment and actual revenue. With only ~$110B in trailing twelve-month revenues across the entire AI industry versus hundreds of billions raised in funding, the math doesn't add up. The piece promises to examine OpenAI and Anthropic's financial commitments, hyperscaler exposure, and venture capital's AI bubble risk, arguing that rising infrastructure costs make profitability increasingly difficult to achieve.

Premium: AI Is Getting Way Too Expensive

It is meant to be from the start atleast for half a decade or so, unless they found some revolutionary improvement in resource consumption and SLM takes major place in workflow instead fo LLM.

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“Anthropic and OpenAI want you to talk about the theoretical so that you don’t focus on the tangible…”
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Alarm bells are ringing. With all these noise, money is always king. I’m just curious how they will mitigate these effects now that it is much more obvious to the general public.