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Founder & CEO | Seasoned data and AI/ML executive in healthcare, retail, and hospitality

Here's a compelling article from Sequoia Capital, arguing that the tech industry needs to generate $600 billion in AI revenue to justify the significant investments in GPUs and data centers. Currently, in the ToC market, OpenAI stands as the largest dedicated AI company, with an annual run rate of $3.4 billion. However, this situation appears unsustainable unless a valuable product emerges that a lot of consumers are willing to purchase, like those services from Netflix or Spotify. https://lnkd.in/e8cX475a

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Jonas Steinberg

Principal Engineer at RBI

1w

I'll be honest it is indeed very hard to see where either the product or the profit is going to come from. ChatGPT and OpenAI are clearly here to stay, but productizations of that importance and scale are admittedly hard to imagine. Whatever the case -- we're not going to come anywhere close to 600B. "Generative search" like ChatGPT is here to stay, that I have zero doubt on. Personally I would never go back to using Google for most things, because similarly like how it turns out that most Uber drivers are not serial killers and are generally good enough at getting me from point a to point b, generative search is almost always good enough and gets me from point a to point b and if there's a problem it's not a big deal. At the enterprise model this is also a game changer. But 600B, no.

Bruno Da Cruz Portes

Cloud Computing | AI | Solidity | Blockchain | DeFi | Ciência de Dados | NFT | Python | CPA-20 Anbima

1w

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