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.
They spent 38.5 billion on 13 billion in revenue last year. Even if you take out training costs, operational margins are negative at a cost of 14.8 billion as long as you include sales and marketing, which you absolutely should because they are clearly hiding expenses in that bucket. Nobody would spend 5.7 billion a year on marketing when they’re already losing 20 billion.