News Post
Arstechnica
| 6mSo far, AI hasn’t been profitable for Big Tech
Big Tech companies like Microsoft and Google are struggling to make AI products profitable due to the high cost of running advanced AI models. Large language models (LLMs) used for text generation require expensive servers and energy-consuming chips, resulting in significant operational losses. The nature of AI computations, which requires new calculations for each query, makes flat-fee models risky. Some companies are trying to reduce costs, while others are investing more deeply in the technology. Experts anticipate a shift towards profitability-focused approaches in the AI industry.
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