this post was submitted on 02 Jun 2026
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I can't remember which article I read that mentioned it, but I think the stats are something like AI has cost billions (could have a trillion, but don't quote me cause I'm paraphrasing), and still hasn't generated any profit. At all.
I feel like you could get a specialized local model to the level of Claude code without destroying the earth with data centers, and running in your house on your gpu, for a fraction of the cost. I'm almost positive this is the result of end game venture capitalism playing out like the sad final days of an addict who never quit. Cause if you could lie and say you are building god for a trillion dollars would you? Capitalists would.
Markov models?
It'll never be profitable. They're selling a dream.
Bundling it with existing business contracts and raising the prices might be profitable. Provided that it's not actually used much.
It'll be cheaper to use Indians than use Claude. Every major American model is subsidised to get people addicted.
My AI enthusiast friends are interested in hosting their own model on a beefy laptop or a rack in their back closet. There are just so many better options than giving Microsoft $6000/month (or $600/month).
You can do that, but for a curve fit ("AI") algorithm that's trained for specific pattern matching, not something you train on the entire Internet worth of data.
I thought that if you download a pretrained model (probably a "lite" variant) it can get you pretty far, no?
Ah. I see. Not your own model; just your own hosting infrastructure.
Yeah, you could potentially do it. You'll get the same junk they're delivering with the model running on their infrastructure though, of course.
https://isaiprofitable.com/