this post was submitted on 16 Aug 2025
262 points (92.5% liked)
Technology
74114 readers
2688 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related news or articles.
- Be excellent to each other!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
- Check for duplicates before posting, duplicates may be removed
- Accounts 7 days and younger will have their posts automatically removed.
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I wrote the article, Ed said that in the linked blog post: "There Is No Real AI Adoption, Nor Is There Any Significant Revenue - As I wrote earlier in the year, there is really no significant adoption of generative AI services or products."
There is a pretty clear path to profitability, or at least much lower losses. A lot more phones, tablets, computers, etc now have GPUs or other hardware optimized for running small LLMs/SLMs, and both the large and small LLMs/SLMs are becoming more efficient. With both of those those happening, a lot of the current uses for AI will move to on-device processing (this is already a thing with Apple Intelligence and Gemini Nano), and the tasks that still need a cloud server will be more efficient and consume less power.
How exactly will that make OpenAI and the likes more profitable?! That should be one of the scenarios that will make them less profitable.
If the models are more efficient, the tasks that still need a server will get the same result at a lower cost. OpenAI can also pivot to building more local models and license them to device makers, if it wants.
The finances of big tech companies isn't really relevant anyway, except to point out that Ed Zitron's arguments are not based in reality. Whether or not investors are getting stiffed, the bad outcomes of AI would still be bad, and the good outcomes would still be good.