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We hate AI because it's everything we hate
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this post was submitted on 16 Aug 2025
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I wouldn't really trust Ed Zitron's math analysis when he gets a very simple thing like "there is no real AI adoption" plainly wrong. The financials of OpenAI and other AI-heavy companies are murky, but most tech startups run at a loss for a long time before they either turn a profit or get acquired. It took Uber over a decade to stop losing money every quarter.
OpenAI keeps getting more funding capital because (A) venture capital guys are pretty dumb, and (B) they can easily ramp up advertisements once the free money runs out. Microsoft has already experimented with ads and sponsored products in chatbot messages, ChatGPT will probably do something like that.
Except he doesn't say that. the author of this article simply made that up.
There is a high usage rate (almost entirely ChatGPT btw, despite all the money sunk into AI by others like Google) but its all the free stuff and they are losing bucketloads of money at a rate that is rapidly accelerating.
There is no path to profitability.
I wrote the article, Ed said that in the linked blog post: "There Is No Real AI Adoption, Nor Is There Any Significant Revenue - As I wrote earlier in the year, there is really no significant adoption of generative AI services or products."
There is a pretty clear path to profitability, or at least much lower losses. A lot more phones, tablets, computers, etc now have GPUs or other hardware optimized for running small LLMs/SLMs, and both the large and small LLMs/SLMs are becoming more efficient. With both of those those happening, a lot of the current uses for AI will move to on-device processing (this is already a thing with Apple Intelligence and Gemini Nano), and the tasks that still need a cloud server will be more efficient and consume less power.
How exactly will that make OpenAI and the likes more profitable?! That should be one of the scenarios that will make them less profitable.