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LLMs as parlor trick to raise money for compute infrastructure
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Date: May 5th, 2026 6:35 PM Author: Richard Ames Huge amount of "AI will never work" doomers focus on the unprofitability of LLMs. "ChatGPT is losing money! It can't pay its bills!" Etc. etc. I have started to view LLMs as the equivalent of J.P. Morgan turning on the lights in his Manhattan estate to show off the power of electricity. Or World's Fairs of old with their dazzling lighting displays.
Whether or not LLMs can ever truly be profitable is besides the point. They have served as proof for the compute layer which will power the much more mundane uses of AI that will go much, much farther from an economic standpoint.
Shit like AI for trucking compliance (to save an unbelievable amount of paperwork), AI for internal firm coordination, AI for financial reporting. You can look at basically every industry and find layers of work that amount to moving information from one bucket to another with a modification or two -- specialized AI which runs on the compute layer will do this whether or not ChatGPT / Claude / Grok can maek it.
None of this will "replace all jobs" or automate everything via AGI. But it will dramatically change the landscape of white collar work such that firms will have fewer and fewer employees. They will still HAVE employees, but huge numbers of people who have simply existed to do basic information processing / formatting / transferring will be toast.
I am probably stating the obvious to most here. But I was lisening to Ed Zitron go on and on about how LLMs can never be profitable and I just thought to myself that he, and many like him, do not see the full picture at all. |
Date: May 5th, 2026 6:38 PM Author: The Redwall Cinematic Universe it's just another financialized ponzi scheme. the data center/infrastructure buildout is just another dimension of the ponzi
lots of companies "aren't profitable" but their valuations keep going up and up and up. AI isn't all that different from other VC ponzi scams. it's just the scale of it that's unprecedented |
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Date: May 5th, 2026 6:52 PM Author: Dr. Samuel-Auguste Tissot America is just a big ole heaping pile of rotting shit being sold back and forth (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868064) |
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Date: May 5th, 2026 6:44 PM Author: OYT and the Indie Reprieve ( ) where are they gonna build these massive data centers? some midwestern wasteland that no one cares about? (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868047) |
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Date: May 5th, 2026 6:55 PM Author: cowgod Why does the location matter at all OYT? Does everything have to be in a VHCOL area or else you scoff at it for no reason? (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868077) |
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Date: May 5th, 2026 6:53 PM Author: ...,.,.,.,....,..,.,.,,.,.,,..,. the 'data centers' are just empty buildings like the Somali daycares. check the tapes. (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868069) |
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Date: May 5th, 2026 6:54 PM Author: Cave Johnson The future is in local AI. Anyone who doesn't see this coming is getting btfo (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868075) |
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Date: May 5th, 2026 6:55 PM Author: Dr. Samuel-Auguste Tissot *Deez Nuts (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868076) |
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Date: May 5th, 2026 6:56 PM Author: Cave Johnson It's the most competitive space for a reason. Why do you think Google is giving away Gemma for free? (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868080) |
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Date: May 5th, 2026 6:57 PM Author: Dr. Samuel-Auguste Tissot The Future is in DEEEZZ NUTTTSS (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868082) |
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Date: May 5th, 2026 6:55 PM Author: Richard Ames I am also open to the idea that it's just another ponzi to keep the debt bubble going. I am a big "the debt bubble drives everything" believer. But I can also see both things being true.
I can imagine doomers back in the day saying "World Fairs will never be profitable!!" and totally missing The Point. |
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Date: May 5th, 2026 7:02 PM Author: cowgod If AI becomes monetizable outside of writing LinkedIn posts, it’s going to fuck with the debt bubble imho (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868096) |
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Date: May 5th, 2026 7:04 PM Author: Dr. Samuel-Auguste Tissot what debt bubble? (http://www.autoadmit.com/thread.php?thread_id=5864029&forum_id=2...id#49868101) |