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Jowi Morales is a tech enthusiast with years of experience working in the industry. He\u2019s been writing with several tech publications since 2021, where he\u2019s been interested in tech hardware and consumer electronics. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-24/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Jowi Morales Social Links Navigation Contributing Writer Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.
Notton So if multiple companies are blowing their entire token budget in Q1, does that mean these AI startups profitable now? Or are they still sucking off of tax payer money to stay afloat? Reply
VizzieTheViz Notton said: So if multiple companies are blowing their entire token budget in Q1, does that mean these AI startups profitable now? Or are they still sucking off of tax payer money to stay afloat? How’re they using tax payer money? My guess would be they’re just burning through their investor’s money. their investors probably knew what they were getting into when they invested so too bad for them. Reply
fball922 VizzieTheViz said: How’re they using tax payer money? My guess would be they’re just burning through their investor’s money. their investors probably knew what they were getting into when they invested so too bad for them. Sure, until their IPOs where the initial investors get out and leave retail investors holding the bag for an unprofitable technology. Reply
Notton VizzieTheViz said: How’re they using tax payer money? My guess would be they’re just burning through their investor’s money. their investors probably knew what they were getting into when they invested so too bad for them. US Military uses OpenAI, which is US tax payer funded. Startup tech companies, AI included, can apply for federal grant programs and tax credits in various countries. For US, there is SBIR. Canada has the AI compute access fund. China subsidizes quite a few, judging by how often American AI companies complain about it. Reply
dmitche31958 So now we all know why are coding projects have slowed down so much. Keep Sam's hands away from a microphone and keyboard! 🙂 Reply
thrus Well it was desired to cut staffing costs but maintain output, that cost moved to AI that the staff were being told constantly to use. So working as management said for it to. Reply
VizzieTheViz Notton said: US Military uses OpenAI, which is US tax payer funded. Startup tech companies, AI included, can apply for federal grant programs and tax credits in various countries. For US, there is SBIR. Canada has the AI compute access fund. China subsidizes quite a few, judging by how often American AI companies complain about it. If the US military is buying stuff, wether it’s AI services or tanks, that’s the military spending taxpayer money I’d say. Good point on the grants and tax incentives, that could be construed as spending taxpayer money or at the very least of not paying their fair share of taxes. I still feel that they’re mostly spending investor’s money though, but you’re right that it’s not just that. Reply
VizzieTheViz fball922 said: Sure, until their IPOs where the initial investors get out and leave retail investors holding the bag for an unprofitable technology. Nobody is holding a gun to any retail investors head forcing them to buy open AI stock, so I can’t really feel any sorrow for them if that’s the way it turns out. If you think you can pick the right stocks yourself go ahead and deal with the consequences, whether you become a billionaire or lose a bunch of money. If you think you can’t pick stocks yourself just buy into an index fund and sit back. Probably best for most people including myself. Reply
alan.campbell99 It appears the concept of ROI might be finally dawning on some companies that jumped on AI without a shred of critical analysis. OpenAI is an obscenely lossy company who won't be profitable anytime soon . I also won't weep for VC or private equity firms flushing their money down the toilet. The issue is when this impacts things like retirement funds that are increasingly getting involved in this nonsense as they try to find investments with good returns. Reply
DoubtfulJonny If you are maxing out tokens, you have failed to plan well. Limited token budgets mean you have to plan their use much more efficiently with solid planning, rules, commands and hooks. Do not throw everything at your AI and expect alchemy. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/openai-ceo-sam-altman-admits-ai-token-costs-are-becoming-a-huge-issue-company-seeks-improved-value-as-overspending-becomes-a-meme#main
- https://www.tomshardware.com/subscription
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Informational only. No financial advice. Do your own research.