Palo Alto CEO Says AI Token Cost Needs to Drop 90% - OpenAI is DEAD

How about the amount of completely stupid CEOs drops by 90%?

I’m old enough to remember when tokenmaxing was a thing.

"AI" was already nonsensical enough 2 years ago, but the moment RAM and SSD prices got borked last fall is the moment these companies tipped a domino effect. People already did not want to buy "AI computers." Now only is that not desired, now no one wants to buy actual computers at all because of the horrendous cost increase. Could have been actual designs for local use, but all the demand went to datacenters. And NOBODY will actually use them.

'holy crap.. we can't afford this crap'

Ed Zitron has been beating the drum on this for months.

Considering that Jensen Huang is selling the proverbial pickaxe outside the goldmine, encouraging token maxxing makes total sense

so only the Chinese AIs can fit into that category? haha.

One of the first hard lessons in IT; is seeing the difference between a cool technology and a valuable technology. Block chain is a cool technology, but relational DB's are more valuable... It's a brutal truth of the tech world. LLM's were exposed to not just tech folks, but the entire world. Those folks didn't learn this lesson and are now figuring this out the hard way.

- costs more than humans - produces worse work - hardware getting more expensive - price is highly subsidized - customers want it to be even cheaper AI has the worst business model in the history of computer technology.

The AI companies already lose billions, so I wonder how they make money if prices drop by 90%.