Ai Read_012 - The Subprime AI Crisis

Oct 10, 2024

Explore the precarious state of the AI market and the looming financial concerns surrounding giants like OpenAI. Delve into the unsustainable hype and inflated expectations fueling a potential 'subprime AI crisis.' Unravel the paradox of hefty investments versus the reality of profitability challenges faced by major tech players. Discover the risks tied to an industry heavily reliant on venture capital and the dire implications if the anticipated revenue growth fails to materialize.

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What do numerous over-hyped product launches, massively subsidized compute, over extended investment, lack of customer adoption, unwillingness to pay extra, enormous and increasing costs, and total dependence on a few massive players have in common?

The big tech Ai industry!

Today we dive into a fantastic breakdown of the state of the ai market, and the potentially dismal financial forecast for the poster child of Ai success, OpenAi. Is there really a massive market here that supports 100 billion dollar investments ongoing? Or is it all smoke and mirrors with a very uncertain future.

Check out the original article by Edward Zitron at wheresyoured.at (Link: https://www.wheresyoured.at/subprimeai/)