I thought it was also considered a bubble because so much money has been invested in all those projects now that couldn’t possibly return any revenue in 100 years or so.
It’s even worse than that, because the more users they have the more expensive the tools are to run. It’s the opposite of how economy of scale is supposed to work. I forget the exact numbers but apparently for every dollar they make they lose 2 or 3x that.
Every new iteration of their models is also exponentially more expensive to run. They desperately need the output to improve because of how inconsistent it is, but doing that only increases the money hemorrhage.
There’s basically no way out from what I’ve been reading about it.
I thought it was also considered a bubble because so much money has been invested in all those projects now that couldn’t possibly return any revenue in 100 years or so.
It’s even worse than that, because the more users they have the more expensive the tools are to run. It’s the opposite of how economy of scale is supposed to work. I forget the exact numbers but apparently for every dollar they make they lose 2 or 3x that.
Every new iteration of their models is also exponentially more expensive to run. They desperately need the output to improve because of how inconsistent it is, but doing that only increases the money hemorrhage.
There’s basically no way out from what I’ve been reading about it.
Exactly.