this post was submitted on 27 Jan 2025
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cross-posted from: https://lemm.ee/post/53805638

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[–] FightToAdapt@slrpnk.net 69 points 3 days ago (3 children)

I think this prompted investors to ask "where's the ROI?".

Current AI investment hype isn't based on anything tangible. At least the amount of investment isn't, it is absurd to think that trillion dollars that was put in the space already, even before that Softbanks deal is going to be returned. The models still hallucinate as it is inherent to the architecture, we are nowhere near replacing the workers but we got chatbots that "when they work sometimes, then they are kind of good?" and mediocre off-putting pictures. Is there any value? Sure, it's not NFTs. But the correction might be brutal.

Interestingly enough, DeepSeek's model is released just before Q4 earning's call season, so we will see if it has a compounding effect with another statement from big players that they burned massive amount of compute and USD only to get milquetoast improvements and get owned by a small Chinese startup that allegedly can do all that for 5 mil.

[–] prof_wafflez@lemmy.world 22 points 2 days ago* (last edited 2 days ago) (3 children)

hype isn’t based on anything tangible

So just like crypto

EDIT: The crypto bros out in full force... and right on cue proudly proclaiming they don't understand the difference between the value of blockchain technology (which so far has not had a ton of real world value outside of mostly impractical database applications, other than furthering climate change and buying drugs) vs the SPECULATIVE value of coins since coins have no real value factors to back up their SPECULATIVE value. Stocks often have real value that back up their value, like company profits or products. Stop drinking kool aid to the point of literal zero critical thinking, jfc.

[–] FightToAdapt@slrpnk.net 3 points 2 days ago

I think that the technology itself has been widely adopted and used. There are many examples in medicine, military, entertainment. But OpenAI and other hyperscalers are a bad business that burns through a loooot of cash. Same with Meta AI program. And while this has been a norm with tech darlings that they usually don't break even for a long time, what's unprecedented is the rate of loss and further calls for even more money even though there isn't any clear path from what we have to AGI. All hangs on Altman and other biz-dev vague promises, threats and a "vibe" that they create.

[–] TheMachineStops@discuss.tchncs.de 3 points 2 days ago* (last edited 2 days ago) (1 children)

You fogot NSFW content, many people are making money using it. There is also AI advertising using fake models, very lucrative business.

[–] FightToAdapt@slrpnk.net 2 points 2 days ago (1 children)

I'm not saying that it doesn't have any uses but the costs outpace the investments done by a mile. Current LLM and vLLMs help with efficiency to a degree but this is not sustainable and the correction is overdue.

[–] TheMachineStops@discuss.tchncs.de 3 points 2 days ago* (last edited 2 days ago) (1 children)

I was making a joke, I agree with you it is over hyped. It basically just takes the training data mixes it up and gives you a result. It is not the so called life changing thing that they are advertising. It is good for writing email though.

[–] FightToAdapt@slrpnk.net 1 points 2 days ago

Ah, sorry, didn't catch it ^^"

[–] Isthisreddit@lemmy.world 2 points 2 days ago (1 children)

I have a dirty suspicion that the "where's the ROI?" talking point is actually a calculated and collaborated strategy by big wall street banks to panic retail investors to sell so they can gobble up shares at a discount - trump is going to be pumping (at minimum) hundreds of BILLIONS into these companies in the near future.

Call me a conspiracy guy, but I've seen this playbook many many times

[–] FightToAdapt@slrpnk.net 2 points 2 days ago (1 children)

I mean, I'm working on that tech and the evaluation boggles my mind. This is nowhere near worth what is put into it. It rides on empty promises that may or may not materialize (I can't say with 100% certainty that a breakthrough happen), but current models are massively overvalued. I've seen that happen with ConvNets (Hinton saying we won't need radiologists in five years in....2016, self-driving cars promised every two years, yadda yadda) but nothing to that scale.

[–] Isthisreddit@lemmy.world 1 points 2 days ago

Right - the entire stock market doesn't make sense, doesn't seem to stop Tesla or any of the other massively overvalued stocks. Btw stocks have been massively overvalued for over a decade, but that's a different topic