[HN Gopher] Stability AI reportedly ran out of cash to pay its c...
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       Stability AI reportedly ran out of cash to pay its cloud GPU bills
        
       Author : obelix150
       Score  : 38 points
       Date   : 2024-04-03 14:17 UTC (8 hours ago)
        
 (HTM) web link (www.theregister.com)
 (TXT) w3m dump (www.theregister.com)
        
       | datadrivenangel wrote:
       | $11M in revenue on $153M in cloud spend + salaries...
       | 
       | Is the AI bubble going to pop hard soon?
        
         | dlachausse wrote:
         | I think it will just shift away from relying on cloud providers
         | for the underlying infrastructure.
        
         | romeros wrote:
         | AI is not a bubble. Anymore than iphone / the internet was a
         | bubble.
        
           | joezydeco wrote:
           | So where's the revenue?
        
             | consumer451 wrote:
             | At companies with a business plan like Midjourney, which
             | has 200M in revenue, 40 employees, and no investors.
        
           | brailsafe wrote:
           | > Anymore than iphone / the internet was a bubble.
           | 
           | By that do you mean they're technology platforms that outlive
           | their obvious peak hype investment dice rolls?
        
           | kromem wrote:
           | As a broad advancement that's true, but on individual
           | companies there's going to be a ton that don't make it (which
           | is the case for all companies, but for AI there's a
           | significant number of new ones to fail within the next 10
           | years).
        
           | eek2121 wrote:
           | You have no way of knowing that. Remember, the parent poster
           | is referring to the current ridiculous hype + push of current
           | AI. Current AI models were trained on copyrighted material.
           | Lawsuits are taking place.
           | 
           | Many different members of the US government have indicated
           | that just because AI is new and fancy, does not mean
           | companies get to violate established law, including
           | copyright. The head of the FTC was the most recent person to
           | state this.
           | 
           | OpenAI could very likely be sued out of existence. When that
           | happens, all who invested in them could lose billions. The US
           | government very likely won't intervene because there are
           | multiple lessons to be learned from this.
           | 
           | Courts are there to enforce the law, regardless of how
           | "amazing" a technology may appear.
        
             | eek2121 wrote:
             | To add something I forgot to say, yes, AI as a concept is
             | here to stay. The current hype surrounding existing
             | companies will not, however.
        
           | Legend2440 wrote:
           | The internet was a bubble too. Remember the dot com era?
           | 
           | Just because the tech is legit doesn't mean it can't have a
           | bubble.
        
         | MomoXenosaga wrote:
         | Rookie numbers. How much did Uber lose? Wirecard?
        
           | super256 wrote:
           | Wirecard was a fraud, not a bubble.
        
           | John23832 wrote:
           | *In a ZIRP environment.
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | More discussion: https://news.ycombinator.com/item?id=39868539
        
         | ShamelessC wrote:
         | Another one of those "what good reason was there for flagging
         | this" moments.
        
           | nextworddev wrote:
           | There's a vested downvote ring that tries to suppress bad PR
           | for stability on HN
        
       | ChrisArchitect wrote:
       | Related:
       | 
       |  _StabilityAI chief resigns, raising doubts about AI start-up's
       | future_
       | 
       | https://news.ycombinator.com/item?id=39894334
        
       | barfbagginus wrote:
       | This makes me worry that the 20 bux a month I pay for GPT4 could
       | end up being more like 200 bux on the backend.
       | 
       | When they stop running gpt4 as a loss leader, I'll probably lose
       | access.
        
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       (page generated 2024-04-03 23:02 UTC)