this post was submitted on 22 Dec 2024
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It's fucking fantastic news, tbh.
Here's my take, let them dismiss it.
Let em! Remember Bitcoin at $15k after 2019?
Let em! And it's justified! If Ai isn't important right now, then why should its price be inflated to oblivion? Let it fall. Good! Lower prices for those of us that do see the value down the road.
That's how speculative investment works. In no way is this bad. Are sales bad? Sit back and enjoy the show.
Of AI products? By all available metrics, yes, sales for AI driven products are atrocious.
Even the biggest name in AI is desperately unprofitable. OpenAI has only succeeded in converting 3% of their free users to paid users. To put that on perspective, 40% of regular Spotify users are on premium plans.
And those paid plans don't even cover what it costs to run the service for those users. Currently OpenAI are intending to double their subscription costs over the next five years, and that still won't be enough to make their service profitable. And that's assuming that they don't lose subscribers over those increased costs. When their conversion rate at their current price is only 3%, there's not exactly an obvious appetite to pay more for the same thing.
And that's the headline name. The key driver of the industry. And the numbers are just as bad everywhere else you look, either terrible, or deliberately obfuscated (remember, these companies sank billions of capex into this; if sales were good they'd be talking very openly and clearly about just how good they are).
That's if you're still in the camp that climate change isn't politically impossible.
at least at this point
If I were more positive about the situation, I'd agree entirely, but... I don't think we're gonna make it, man.