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Given the ai companies are running at a loss, it’s fair to assume which of these is likely
This is a common myth, inference is not typically run at a loss, despite claims. It’s only a loss if you include staff and ongoing training costs. They could lock in their models now and be profitable if they wanted to.
Edit: I see the comment above has changed (or I misread initially) to say the companies are running at a loss rather than inference running at a loss. Yes, that’s extremely true. Now my comment doesn’t make any sense and is irrelevant so feel free to ignore my pedantry.
"Inference is not typically run at a loss"
Bro thats called cherry picking
Businesses work on cash in cash out
Right now AI companies make way less cash than they spend overall when you dont include investments
Furthermore, most people use a free version of AI and would stop using it if it cost them anything
Explain how to pivot to profit when the investments dry up, were all waiting
Do companies tend to use the free version too?
Do rhetorical questions add anything of value, beyond a gotcha moment, to the conversation?