alt Hacker NewsIt is about AI. The news is "the AI is far less monetarily lucrative endeavour than we thought but don't worry, we already fired enough people to compensate for the loss"
Replies
mirrorlogic • yesterday at 7:55 PM
Punchy FTW
torginus • yesterday at 11:27 PM
From what I can tell, its more about cashflow - basically companies need to spend most of their revenue or be taxed on it - and you can buy only so many servers.
Now capital can flow towards AI - I'm sure the reason why engineers at Boeing or GM don't make the same money as software devs do is that their industries are otherwise capital intensive, among other things.
... the just around the corner syndrome. And when new quite capable model comes, prices triple in 6 months like with chatgpt 5.5 now and they are still losing on it. Soon, hiring that junior will be cheaper than monthly subscription. I am struggling to imagine ie some big bank willing to invest just for this say 50 millions a month.
Then within few years, when the amount of bugs in quickly produced software skyrockets and it will be extremely hard to debug that code by hand, market will change again. These llms will find their solid place but not at current projection/investment wishful thinking. And definitely not for software that is continuously developed, changed and fixed for decades (which is default for most corporate apps, be them internal or vendor ones).