Edward Zitron has been pounding the drum in 20K word posts for a while now as well, basically saying AI:
has no viable consumer product
Is currently losing money on each user and loses more money for each new user added
He is wrong. People are profiting on serving DeepSeek R1 as well as distilled models.
Has largely run out of new data to scrape
Which isn't true, but even if it were really doesn't matter, most of the progress these days is using synthetic data.
Massively exponential increased costs do for each new generation do not notably improve quality of results
There hasn't been 'massive exponential increased costs'. Indeed often the opposite, for the same given compute budget you get massively better results.
Quality of results have never met a reasonable level and throwing more "compute" (as he calls it) only increases costs
They are comparable to human experts at many tasks for a tiny percentage for inference cost, people complain about hallucination but often hallucination is lower than human experts on the same task (Ie MDs doing a differential diagnosis). Progress continues as we devise new benchmark test sets that aren't saturated.
His lates missive...for someone who has 35 minutes to blow: https://www.wheresyoured.at/wheres-the-money/?ref=ed-zitrons-wheres-your-ed-at-newsletter
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