Debbie Downer Says, No AI Payoff Until 2026
December 27, 2024
Holiday greetings from the Financial Review. Its story “Wall Street Needs to Prepare for an AI Winter” is a joyous description of what’s coming down the Information Highway. The uplifting article sings:
shovelling more and more data into larger models will only go so far when it comes to creating “intelligent” capabilities, and we’ve just about arrived at that point. Even if more data were the answer, those companies that indiscriminately vacuumed up material from any source they could find are starting to struggle to acquire enough new information to feed the machine.
Translating to rural Kentucky speak: “We been shoveling in the horse stall and ain’t found the nag yet.”
The flickering light bulb has apparently illuminated the idea that smart software is expensive to develop, train, optimize, run, market, and defend against allegations of copyright infringement.
To add to the profit shadow, Debbie Downer’s cousin compared OpenAI to Visa. The idea in “OpenAI Is Visa” is that Sam AI-Man’s company is working overtime to preserve its lead in AI and become a monopoly before competitors figure out how to knock off OpenAI. The write up says:
Either way, Visa and OpenAI seem to agree on one thing: that “competition is for losers.”
Too add to the uncertainty about US AI “dominance,” Venture Beat reports:
DeepSeek-V3, ultra-large open-source AI, outperforms Llama and Qwen on launch.
Does that suggest that the squabbling and mud wrestling among US firms can be body slammed by the Chinese AI grapplers are more agile? Who knows. However, in a series of tweets, DeepSeek suggested that its “cost” was less than $6 million. The idea is that what Chinese electric car pricing is doing to some EV manufacturers, China’s AI will do to US AI. Better and faster? I don’t know but that “cheaper” angle will resonate with those asked to pump cash into the Big Dogs of US AI.
In January 2023, many were struck by the wonders of smart software. Will the same festive atmosphere prevail in 2025?
Stephen E Arnold, December 27, 2024
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