So far, AI hasn’t been profitable for Big Tech
So far, AI hasn’t been profitable for Big Tech

So far, AI hasn’t been profitable for Big Tech

  • 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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