Am I the only one who finds the economics behind AI kind of unsettling?

Reddit r/singularity News
ai-economics business-model cost investment profitability

Summary

The author expresses unease about the economics of AI, noting the high costs of training and running models while companies offer them cheaply or for free, and questions where sustainable profits will come from.

The more I use AI, the more one thing about its economics bothers me. What unsettles me is how the economics seem to work. These models cost enormous amounts of money to train and run, yet companies keep making them cheaper or even free for users. Investors are pouring in billions with the expectation that profits will come later, but it's hard to see where those profits actually come from if AI keeps driving down the value of the work it's replacing. What am I missing?
Original Article

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