alt Hacker News>Except the "profit that is mathematically impossible" part. That's just made up and false. It's entirely possible that we are actually underestimating demand, and there is going to be tons of profit.
JP Morgan says $650 billion in annual revenue required to deliver mere 10% return on AI buildout is equivalent to $35 payment from every iPhone user, or $180 from every Netflix subscriber 'in perpetuity.'
Very, very, very unlikely it makes profit, which why AI keeps getting overhyped by CEOs.
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Did they consider that profits on the build out won't be uniform, i. e. there will be some companies that go under but the rest of them will capture the profit?
Consider that a large majority of the revenue will come from businesses.
Even $100 per month per employee will likely turn out to be quite reasonable, if it can make employees more productive by several hundred dollars per month.
AI labs selling a billion subscriptions for $1000/yr is absolutely on the table.
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Altman said months ago that they are expecting around $65/user/month from ad-supported ChatGPT. A strong hint about where they see account prices in the future.
When you run the numbers, $65/mo turns AI investment into a a 5-7 ROI, which is totally within normal bounds.
Considering there are over a billion unique weekly active users for the major labs, and demand has been relentless, it's a pretty easy sell to get investors on board.
"You pay internet, you pay phone, you pay AI".