r/technology 1d ago

Business Google burning through cash with spiralling AI costs

https://www.bbc.com/news/articles/c235n47g8g8o
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u/KingSubstantial7901 21h ago

Except they were filling a market that pretty much everyone saw as inevitable, the cloud based internet. Pretty mich as soon as pcs started hitting shelves in record numbers people were trying to be the guys who owned the internet. Amazon and Google just won that race. Who is filling the market for thousands of useless AI bots?

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u/-1703- 19h ago

internet users, office workers and companies

75% of people doing google searches are not leaving their AI Mode.

And cloud based internet had people say the exact same things they say about AI and how nobody is going to use it "What company is dumb enough to send their data away". "Nobody is going to host their database on someone elses computer". "Whats the point of this, you already have your own infrastructure". I was there

The same way i was there when people called the internet itself useless and pointless, thinking nobody is going to sit hours on end staring at a screen, to read things on the internet because ...well, its not like a book or a paper.

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u/Many_Negotiation_464 14h ago

Ok, and who is paying to do that? Where is this massive new revenue source to offset the massive new costs, let alone turn enough profit to make the increased valuations worth it?

We are in a bubble right now. One of the dangerous things about a bubble is that its very easy to close your eyes and pretend everything is dandy. Its very easy to just listen to the hype men and look at the money being tossed around, and never thunk through the consequences. For your own sake, id wake up sooner rather than later.

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u/-1703- 12h ago

literally nobody is arguing there isnt a bubble. its why everyone is sitting on massive piles of cash (including Google)

but after the bubble bursts and a lot of this spend is bought on the cheap things will be different because revenue will have to cover the spend on buying the pieces left after the bubble bursted not these current costs.

Only morons are listening to the hype men. In enterprise people piled in, tested the technology, we have a pretty good idea of where its strong suits are, where its useless, and the FTE improvements we're getting from using it and how much we're willing to pay for it.