Cross posted from https://sh.itjust.works/post/65157881
“If 70% of AI revenues are these two companies, there is no AI industry.”
Writer of Where’s Your Ed At and the host of the Better Offline podcast Ed Zitron joins The Tech Report’s Isaac Pound to talk about the state of the AI industry as it’s revealed that over two thirds of hyperscaler AI revenue is coming from two companies.
OH come on, revenue != profit. That’s why it’s a boom (bubble).
The profits are near zero, AFAIK negative for OpenAI, but you are missing the point. namely that 2 companies that aren’t even making money, are responsible for 70% of the revenue for the data centers. Meaning the data centers don’t have a sound business model.
So the ginormous investments in data centers are moronic.
