Big Tech companies like Microsoft and Google are grappling with the challenge of turning AI products like ChatGPT into a profitable enterprise.
The cost of running advanced AI models is proving to be a significant hurdle, with some services driving significant operational losses.
Corporate customers are unhappy with the high running costs of AI models.
The nature of AI computations, which require new calculations for each query, makes flat-fee models risky.
Some companies are trying to dial back costs, while others continue to invest more deeply in AI tech.
Microsoft's GitHub Copilot, which assists app developers by generating code, has been operating at a loss despite attracting more than 1.5 million users.
One of the reasons AI services are costly is that some companies have been reaching for the most powerful AI models available.
Microsoft has been exploring less costly alternatives for its Bing Chat search engine assistant.
Advances in AI acceleration hardware may eventually reduce the costs of operating complex models.
Experts anticipate a more stringent financial approach in the near future, transitioning from experimental budgets to focusing on profitability.
Source : https://arstechnica.com/information-technology/2023/10/so-far-ai-hasnt-been-profitable-for-big-tech/
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