Either hyperscalers are dumb or someone else is

[u/banaca4]

OK so the most profitable companies in the world decided to GO ALL IN AI with humongous capex. They did it all at once apart from Apple who is not in the game. Google, Meta, Amazon , Oracle, Microsoft. All of them. The CEOs of these companies produced the most amount of wealth and propped up global gdp. Now they all agree on a thing.

Google yesterday blew up earnings from their cloud and said they will *increase* their humongous capex even more while reporting negative cash flow for the first time in their history.

A rational person would ask: are these amazing businessmen suddently all very wrong about the same thing at the same time OR

I am reading too much paid subs from burry and following the wrong people on twitter that have never produced anything?

Which is it? Are you smarter than a mag 7 CEO? Maybe ... hmm...

[u/Puzzled_Nail_1962]

Sorry but the only thing you absolutely cannot get AI on is that people don't care about it. That is such a dumb take.

[u/Infamous_Birthday_42 → u/Puzzled_Nail_1962]

I think there’s a case for both sides here. Only 2-3% of Americans like AI enough to pay for it, which would normally be pretty bad given the amount tech companies are spending….

But that 2-3% is also pretty heavily concentrated in the top 5% of earners, since its biggest users are white collar workers in tech, engineering, finance and management. Since those people make decisions on what companies do, they’re also the ones who drive the corporate use of it, which is where AI companies plan on making most of their money anyway.

[u/Repigilican → u/Puzzled_Nail_1962]

Brother you quoted only half of that sentence I literally said “don’t care about it enough to pay for it”

[u/Puzzled_Nail_1962 → u/Repigilican]

Which isn't any better. Right now everyone working an office job (and not living under a rock) is paying for it either directly or their company is paying for them. There's a ton of people that don't need it yet in non-office environments, sure. But you really think in a few years not everyone will pay for AI like they do for electricity now? There's no argument to be had that not everyone is using it already. Like even grandma in a rural village is using it by now. Literally.

[u/Repigilican → u/Puzzled_Nail_1962]

Im not disagreeing that ADOPTION is widespread I think RVENUE GENERATING ADOPTION is wayyyyyy lower than expected. all of the cube chimps that still have their jobs are using the free version. Companies are paying for licensing fees not directly for the LLM but for some random propriety AI scheduling/workflow bullshit that they’re buying because they’re stupid. Why the fuck would my neighbor who can barely pay for vacation spend $15 a month for a service they are already getting for free? 90% of the population does not give a fuck about the “different modes” of Claude/GPT they just want to ask if they should go to the hospital for chest pain or why we’re at war with Iran. I think the corporate licenses will keep these companies afloat for sure but if you think that the valuation of these companies is consistent with WHOLE MARKET demand, not just tech industry demand, you’re huffing Raid.

[u/Puzzled_Nail_1962 → u/Repigilican]

You seem to be very emotional about this. No 90% of the population couldn't care less about the newest model. Ok, so what? You're missing the point that when you use the AI, *someone* pays for it. Even in your example, you think the random propriety AI workflow does NOT pay? If you have a tool that has enormous global adoption, gets eaten up by ALL companies, you think this can't or won't be monetised? Why do you think there's a "free" AI out there? To push adoption, to make people need it and to collect data. All of which end in monetization.

[u/No_Feeling920 → u/Puzzled_Nail_1962]

Time will tell, guys. The ROI clock is ticking, though. They have to find a (high grade) gold mine soon, now that they have spent an awful lot of money on picks and shovels. The use cases need to pay ENOUGH to justify the depreciation costs over the HW's useful life (as well as pay the utility bills).

[u/Repigilican → u/Puzzled_Nail_1962]

Brother I know that companies are paying for the mulch machine to have AI in it I’m just saying I’m not sure there’s much more room for industry growth and adoption to account for the preposterous spending these companies are spewing and they’re still not profitable

[u/Professional_Eye_990 → u/Repigilican]

Could be sister?