When we say “burning money” just keep in mind that money is not coal: you only transfer it to someone else. People are making money with AI right now, just not AI companies.
Burning money in this context does not mean that the money disappears, but that the thing you get for your money is worthless, but you pretend it isn’t. Here, it’s GPUs.
The problem is that how it should really work is that people make a product, they sell that product for money, and since the product they sold is worth as much as the money paid for it, that value is now twice in the economy, once in the shape of cash and once in the shape of the product. This is how economic growth should work.
Now you could say that if someone paid that much for that product, it should be worth that much. But if it’s just you and your friend passing it back and forth, that would feel fraudulent, as it isn’t worth as much to most people. All the AI money and growth, which is a significant portion of the US GDP growth, is money that’s passed between like 7 companies, in a circular way.
And the main valuable product in the whole AI boom is not even AI, but GPUs, as in that’s the only thing people actually pay for. GPUs have a lifetime of months to years at most, even if the demand for them does not crash.
This wave of AI gave virtually anyone a chance to build products for a very low cost and a decent quality that was out of reach even for small teams years ago. If you think that it’s all about selling GPUs you’re missing the point.
The AI GPU is the only product that actually makes money, as in a positive value chain that is not subsidized by VC money and is able to exist without being subsidized by VC money?
The point is, almost all of the AI growth and all of the profits have been AI GPUs. If I’m missing the point everyone else seems to as well, and when all your customers keep missing the point of your products, your business is not long for this world.
My point is, which product, built by AI or built on AI is going to earn a trillion to pull OpenAI out of the hole and make AI keep existing after 2027?
If I’m missing the point everyone else seems to as well, and when all your customers keep missing the point of your products, your business is not long for this world.
Whatsapp wasn’t profitable while it spread worldwide with little to no monetization. It killed the SMS, was bought for billions by Facebook (that wasn’t profitable either in the beginnings), and now it’s everywhere. There are lots of products following this path and AI is just going to be the biggest one in history, so far.
AI is becoming ubiquitous, it’s being integrated in our way of working, it’s creating new professional figures and new possibilities, and it will kill a lot of stuff in the process. It’s simply false that everyone misses the point.
My point is, which product, built by AI or built on AI is going to earn a trillion to pull OpenAI out of the hole and make AI keep existing after 2027?
It’s going to be a new industrial revolution, so the answer is more or less everything. There is that famous quote from the 70s when someone wondered who would want a computer at home. This is the same story and you will have AI at home at some point. Actually, you may be using one occasionally without even knowing.
When we say “burning money” just keep in mind that money is not coal: you only transfer it to someone else. People are making money with AI right now, just not AI companies.
Burning money in this context does not mean that the money disappears, but that the thing you get for your money is worthless, but you pretend it isn’t. Here, it’s GPUs.
The problem is that how it should really work is that people make a product, they sell that product for money, and since the product they sold is worth as much as the money paid for it, that value is now twice in the economy, once in the shape of cash and once in the shape of the product. This is how economic growth should work.
Now you could say that if someone paid that much for that product, it should be worth that much. But if it’s just you and your friend passing it back and forth, that would feel fraudulent, as it isn’t worth as much to most people. All the AI money and growth, which is a significant portion of the US GDP growth, is money that’s passed between like 7 companies, in a circular way.
And the main valuable product in the whole AI boom is not even AI, but GPUs, as in that’s the only thing people actually pay for. GPUs have a lifetime of months to years at most, even if the demand for them does not crash.
This wave of AI gave virtually anyone a chance to build products for a very low cost and a decent quality that was out of reach even for small teams years ago. If you think that it’s all about selling GPUs you’re missing the point.
The AI GPU is the only product that actually makes money, as in a positive value chain that is not subsidized by VC money and is able to exist without being subsidized by VC money?
The point is, almost all of the AI growth and all of the profits have been AI GPUs. If I’m missing the point everyone else seems to as well, and when all your customers keep missing the point of your products, your business is not long for this world.
My point is, which product, built by AI or built on AI is going to earn a trillion to pull OpenAI out of the hole and make AI keep existing after 2027?
Whatsapp wasn’t profitable while it spread worldwide with little to no monetization. It killed the SMS, was bought for billions by Facebook (that wasn’t profitable either in the beginnings), and now it’s everywhere. There are lots of products following this path and AI is just going to be the biggest one in history, so far.
AI is becoming ubiquitous, it’s being integrated in our way of working, it’s creating new professional figures and new possibilities, and it will kill a lot of stuff in the process. It’s simply false that everyone misses the point.
It’s going to be a new industrial revolution, so the answer is more or less everything. There is that famous quote from the 70s when someone wondered who would want a computer at home. This is the same story and you will have AI at home at some point. Actually, you may be using one occasionally without even knowing.