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Why OpenAI Is A Terrible Business (omny.fm)

submitted 3 weeks ago by [email protected] to c/fuck_ai

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As of last week, OpenAI is now worth $157 billion - yet below the hood is a far darker story. In this episode, Ed Zitron explains the cold, hard truth - that OpenAI is a terrible business that burns billions of dollars, and its failure to scale its cloud business tells a dark tale about the wider generative AI industry.

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[–] [email protected] 7 points 3 weeks ago* (last edited 3 weeks ago)

Current neural networks do really fancy statistics. To make the model better, you need to make the statistics more precise. Leading to marginal improvements of accuracy requiring exponentially growing marginal amounts of training data. This leads to exponentially decaying marginal utility coupled with exponentially growing marginal expense. Which quickly becomes unsustainable. Edit: On the plus side, this likely means you won't have to give up much utility when the market adjusts.