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Arstechnica

Arstechnica

| 7m

So far, AI hasn’t been profitable for Big Tech

Big tech companies like Microsoft and Google are facing challenges in making AI products profitable. The cost of running advanced AI models, such as Microsoft's GitHub Copilot, is proving to be a significant hurdle, with some services driving operational losses. The high cost is attributed to the need for powerful servers and energy-consuming chips to operate large language models. Companies are exploring ways to reduce costs, but the return on investments in AI is expected to take time. Experts predict a more stringent financial approach in the future as the focus shifts to the profitability of AI models.

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