• eksb@programming.dev
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    2 months ago

    Because it is a scam. Just like the people selling, instead of using:

    • healing crystals
    • essential oils
    • blockchain
    • penis-enlargement pills
    • JIRA
  • Quacksalber@sh.itjust.works
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    2 months ago

    I’d wager it’s simply not possible to be profitable using AI for most use-cases. You either burn way too many tokens on your queries or risk your business falling victim to an under-tokenized AI hallucination.

      • Whitebrow@lemmy.world
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        2 months ago

        I love the assumption that if you spend enough tokens, it won’t hallucinate, like it isn’t a mathematical certainty or anything.

        • zod000@lemmy.dbzer0.com
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          2 months ago

          I agree with you, but I liken to to how companies tend to replace competence with bureaucracy. With enough layers, a significant amount of mistakes get caught. It just slows everything down and costs a bunch of money. There are still problems that get through, just less of them.

        • dragnucs@lemmy.mlOP
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          2 months ago

          You can cut hallucinations by 90% just by prompting the LLM to.not guess API and function names and to provide it with full docs or MCP to find docs.

          • athatet@lemmy.zip
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            2 months ago

            Yeah but it’s not guessing in the first place. It has zero reasoning skills. It just outputs the most likely next word. Even when you ‘tell it not to’

            • dragnucs@lemmy.mlOP
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              2 months ago

              I know I am getting down voted for this because people haven’t tried it. And let me differ, it has reasoning skills, it now gets beyond predicting the next word. And even reducing it to next word is some kind of primitive reasoning.

              By experience, by telling the AI to not guess APIs and function names and instead provide it with a way of looking through docs, and inspecting the code and other tools to get it do some tests, the hallucinations disappear. I’ve been able to have better results with this setup.

              This is very different than the “no mistakes” joke.

              • spankysalmon@fedinsfw.app
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                2 months ago

                “it has reasoning skills” Nope. It has larger context windows and someone coded in the ability to reprompt itself for “thinking” steps that are literally just a new prompt with the same context that gets fed back in which merely increases the chances of it guessing the next output token correctly.

                It still doesn’t “reason”. It still doesn’t know what the words mean. The modified algorithms are just attempting to generate the corrective prompts for you. If you’ve ever messed with them long enough, you’d understand that these, “no wait fix it” prompts have rapidly diminishing returns at the best of times. Their “thinking” is a bandaid, and a piss poor one at that.

              • CorrectAlias@piefed.blahaj.zone
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                2 months ago

                I know I am getting down voted for this because people haven’t tried it.

                People here have tried it, LLM use is basically enforced at a ton of companies and the tech industry crowd is a huge portion of the population here.

                You’re likely being downvoted as you seem to have a fundamental misunderstanding of how LLMs function. LLMs don’t reason. LLMs don’t think. Telling an LLM to not guess might help ever so slightly, but LLMs can and do hallucate search results regularly.

                It’s a mistake to trust that LLMs aren’t hallucinating just because you told the LLM to not guess.

                • dragnucs@lemmy.mlOP
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                  2 months ago

                  I juste don’t want to talk about this any more becausefor me adding those instructions in AGENTS.MD and giving it the full API and language and platform docs dropped significantly the hallucinations. You just disregarding my experience and want me to believe in your assumptions.

                • dragnucs@lemmy.mlOP
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                  2 months ago

                  It doing sgupid stuff is another issue separate from hallucinations. Preventing LLM from doing dumb shit is more difficult, you need more guards and harnesses.

              • AdamBomb@lemmy.world
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                2 months ago

                I’ll back you up on this. I’ve had the experience of seeing Claude fabricate stuff, and then when I challenge it, it says something like “I guessed, let me look deeper” and then it indeed does check deeper with docs or a configured LSP etc and then discovers the real answer.

                It doesn’t matter if this was the result of reasoning or just more pattern prediction, the result is that if you tell it not to guess, it responds appropriately.

          • kestrel7_7@lemmy.world
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            2 months ago

            This logically leads to a similar question to OP’s again: if it’s so easy to cut down on hallucinations, then why haven’t the designers of this software already integrated that in?

    • im_fine_sandy@nord.pub
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      2 months ago

      This is kinda fundamental to economics: the moment AI learns to perform some task, that task becomes less valuable.

        • im_fine_sandy@nord.pub
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          2 months ago

          That’s the economists angle, yes, but that’s not what I’m getting at.

          You can’t make a business with AI because anyone can use an LLM to do anything an LLM can do.

          There are exceptions in the short term, but they may not last. For example, we’re paying a hefty subscription fee for an AI service that scrapes financial data from scanned pages. It’s much more accurate than traditional OCR.

          Presently its better than its competitors so commands a premium price. However, I don’t think it will enjoy that position for long.

          • GalacticRobot@lemmy.world
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            2 months ago

            This doesn’t make a lot of sense. Just because everyone can use Word doesn’t mean you can’t make a business using it. Oh no, everyone has calculators, guess you can’t have a business that uses calculators. Businesses and people in general use the best tools available for the job, which might be pencil and paper, or eventually an LLM.

            • im_fine_sandy@nord.pub
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              2 months ago

              You’re conflating a tool with a service.

              If you noticed that calculators were really good at adding up numbers, and started a business using a calculator to add up numbers for people, you won’t attract any customers because people can just use their own calculators.

              That does not mean businesses do not use calculators.

              • GalacticRobot@lemmy.world
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                2 months ago

                Wild, accountants must not exist in your mind. Everyone can own a computer but there are massive services of renting those computers ‘in the cloud’. Everyone can buy storage, but for some reason the majority think its easier and cheaper to buy in the cloud. Hell, you could go to the store and purchase a movie, but many still think seeing them in a theatre, or you know, streaming them are a better option. You say LLMs have no business opportunity which seems to show the failure of your thinking.

  • motruck@lemmy.zip
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    2 months ago

    In a gold rush it is better, on average, to sell the shovels then to mine the gold.

  • FriendOfDeSoto@startrek.website
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    2 months ago

    When potatoes came over from the New World, a lot of Europeans grew them as decorative plants. New shit makes people do weird stuff.

    Not everybody is trying to make a business with so-called AI. The peddlers are just the loudest.

    The companies promise their models can do all this stuff for paying customers. If the models were truly that capable, the so-called AI companies ought to be doing everything with them and be raking in the dough like mad. Which they’re not because they know the limitations of the models. It’s what economists call the bullshit gap between marketing and reality. And by economists I mean me.

    • dragnucs@lemmy.mlOP
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      2 months ago

      I like your newly coined term: “marketing bullshit gap”. I will start using it.

      A agree with your point of view fully.

    • GalacticRobot@lemmy.world
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      2 months ago

      I mean if you were an economist you’d know exactly why AI companies are making massive profits, because its more profitable to sell shovels during the gold rush than it is to find gold. Doesn’t mean gold is worthless and not profitable, it’s pretty basic economics, but you know that already.

      • Jaysyn@lemmy.world
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        2 months ago

        I mean if you were an economist you’d know exactly why AI companies are making massive profits

        They are literally not making massive profits. They may be making lyin’ Sam Altman rich, but the VC money is drying up and OpenAI has repayments coming up in 2027 that it doesn’t have a chance in hell of being able to payback.

        https://www.wheresyoured.at/brokenomics/

          • Jaysyn@lemmy.world
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            2 months ago

            Yeah, but they aren’t an “AI company”. They are a hardware company that is propping up AI companies to keep them buying (and warehousing) GPUs via circular financing.

        • GalacticRobot@lemmy.world
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          2 months ago

          You aren’t separating hardware/training costs and costs when the models are developed. Ask the Chinese how thats working out for them, and one of many reasons why their models are so much cheaper.

  • Grimy@lemmy.world
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    2 months ago

    If I recall correctly, shovel companies made a lot of money while only a few of their shovels actually struck gold.

    • Ephera@lemmy.ml
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      2 months ago

      Recent scholarship confirms that merchants made far more money than miners during the gold rush.
      The wealthiest man in California during the early years of the rush was Samuel Brannan, a tireless self-promoter, shopkeeper and newspaper publisher. Brannan opened the first supply stores in Sacramento, Coloma, and other spots in the goldfields. Just as the rush began, he purchased all the prospecting supplies available in San Francisco and resold them at a substantial profit.

      https://en.wikipedia.org/wiki/California_gold_rush

    • xtr0n@sh.itjust.works
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      2 months ago

      But there is no gold at the end of that rainbow. It’s more like a selling Florida swampland to real estate developers model.

      • vaultdweller013@sh.itjust.works
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        2 months ago

        Nah mankind will continue, but it’ll definitely hurt when this shitshow implodes and possibly takes out the current economic model and quite a few governments with it.

  • ch00f@lemmy.world
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    2 months ago

    Better question is if you can really build an app as easily as writing a prompt, why would anyone pay you for your app?

    Somehow AI bros like to pretend that AI is some secret lifehack despite it being one of the most mainstream things in human history.

    • TranquilTurbulence@lemmy.zip
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      2 months ago

      It still takes time and effort to be a project manager for app developer agents. Might as well just pay for it and get stuff done today. Instead of spending time on software maintenance, you could just pay for someone else to deal with all that hassle.

      • EnsignWashout@startrek.website
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        2 months ago

        Right. But Fermi’s Paradox applies.

        Everyone is buying and selling software miracle cure…but all of the software itself is still exaclty as healthy as a con artists prize race horse (not healthy, and actually a mule).

          • EnsignWashout@startrek.website
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            2 months ago

            Yea. Slightly modified - “If conditions are now so prefect now that 8 billion humans can ask their computer nicely to program itself, and it works, then why is non-shit-tier software still vanishingly rare?”

            • TranquilTurbulence@lemmy.zip
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              2 months ago

              Oh that way. Now I get it.

              Anyone can prompt Shlawp to write some code, but an expert would need to check it for errors and stupid design decisions. Normally, the user isn’t qualified to verify the validity of the answer or quality of the code and that’s why people who use Shlawp can’t make high quality applications.

              So, when you say “it works” it’s true for being able to generate at least some kind of code, not good code. The thing about Shlawp is that all of its outputs are very mediocre at best. They look convincing to everyone who aren’t qualified to evaluate the outputs. Those who are, will immediately notice all sorts of flaws.

  • jason@discuss.online
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    2 months ago

    Been shouting this from the rooftops since the beginning. If it was half as good as claimed, I would NOT have access to it.

  • Senal@programming.dev
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    2 months ago

    This is exactly the question i ask “investment advisor” services when they call asking if i want help managing investments.

    For you to have a system that works well enough for me to be interested , there’d be no need for you to spend money on call centers full of people ringing up strangers for money, you could take all of that money and invest it in the plan you are trying to sell me.

    • zod000@lemmy.dbzer0.com
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      2 months ago

      I’ve always thought that as well. Surely it wouldn’t take them long to become ludicrously wealthy with their top investing acumen.

      • BonesawIsReady@lemmy.world
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        2 months ago

        Ikr. If I knew a “foolproof” investing strategy to “make loads of money”, I wouldn’t spend my time trying to teach other people about it, id just be using that strategy myself and actually NOT want other people to know about it.

  • __Lost__@lemmy.dbzer0.com
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    2 months ago

    If you come to seminar at the Holiday Inn, I’ll teach you why! Only $500, and at the end you’ll be able to start your own AI powered business and make millions per year!

  • Fallibilist@feddit.uk
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    2 months ago

    They want AGI, not LLMs. They’re pretty much betting everything on getting there first knowing that if they do it’ll pay them back a millionfold what they invested up front. They’re taking a massive risk for a potentially massive reward. They’re coaching a college kid to become a professional athlete. It’s not profitable yet but they’re investing heavily in them in the hopes that one day it will be.

      • Fredselfish@sh.itjust.works
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        2 months ago

        Exactly LLM are unable to become AGI. So it just them wasting trillions on something that can never advance to what they want.

        • Fallibilist@feddit.uk
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          2 months ago

          LLM are unable to become AGI.

          You could not possibly know that. You’re attributing to it a probability of zero and zero is an extreme number. Unlikely is a claim you can defend. Zero you cannot.

          • atomicbocks@sh.itjust.works
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            2 months ago

            No, we all know that for certain. AGI is a pipe dream that’s why they made up the term AGI so they could act like LLMs were anywhere close to movie AI and not just slightly improved Watson (the model that beat Ken Jennings at Jeopardy). AI has been around for 70 years and we are no closer to thinking computers now than we were then.

            • Fallibilist@feddit.uk
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              2 months ago

              The term AGI was first used in 1997 by Mark Avrum Gubrud in an article named ‘Nanotechnology and international security’

              By advanced artificial general intelligence, I mean AI systems that rival or surpass the human brain in complexity and speed, that can acquire, manipulate and reason with general knowledge, and that are usable in essentially any phase of industrial or military operations where a human intelligence would otherwise be needed. Such systems may be modeled on the human brain, but they do not necessarily have to be, and they do not have to be “conscious” or possess any other competence that is not strictly relevant to their application. What matters is that such systems can be used to replace human brains in tasks ranging from organizing and running a mine or a factory to piloting an airplane, analyzing intelligence data or planning a battle.

          • kingkong@lemmy.world
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            2 months ago

            yep it can be programmed to pretend to be agi and if it was agi they would also know that 90% of the would problems are the epstein class and by default would remove them even if they put gaurdrails in place to prevent this then the agi would not be real agi then if they were truth seeking maximizing good for humanity if they do not target the source of most of the the world evil then the agi is evil and anti human and thus humans would be in danger. lets see if agi is programmed to be on human side or the epstein side.

          • actionjbone@sh.itjust.works
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            2 months ago

            We can know that because a massive spreadsheet has no more ability to think than a tiny spreadsheet.

            No matter how big the spreadsheet gets, it is still fundamentally a spreadsheet.

    • Jaysyn@lemmy.world
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      2 months ago

      To paraphrase Cory Doctrow, you can keep breeding faster & faster horses, but they will never foal a locomotive.

  • Jhex@lemmy.world
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    2 months ago
    1. The AI tech they peddle is impressive and has some uses; but it is nowhere near ready to live up to the hype they created in which you can just pay $10K a year for a license and get rid of a $250K employee

    2. The AI tech they sell for $10K a year, actually costs $20K to run and they know nobody would pay the full cost, let alone the cost + their profit margin

    PS: those are made up numbers to answer the question, while not real numbers, they represent the points I am trying to make

    • 4am@lemmy.zip
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      2 months ago

      That’s because the whole point of AI is to finally back us all into a corner where cloud computing is our only option and we can be monitored and controlled, our news and opinions filtered, dissenters found quickly, and our IP hoarded and summarized, our markets predicted and our products beaten before they launch.

      They dazzle the brain dead middle managers who all lament the lack of flying car futures with a piece of magic, and once enterprise (the big money) isn’t demanding powerful workstations anymore then average consumers can get fucked and we will be locked out of society if we organize.

    • Not_mikey@lemmy.dbzer0.com
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      2 months ago

      The AI tech they sell for $10K a year, actually costs $20K to run

      Open AI and anthropic make a profit on inference / api usage. It’s only really the training that’s dragging down their bottom line.

      • Jhex@lemmy.world
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        2 months ago

        Well unless they have reach a level where training is not needed (which will be never for an LLM), what you told me is that you make a profit freezing ice cream but lose it on the eggs, cream and sugar necessary to make it

        • humanspiral@lemmy.ca
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          2 months ago

          The model releases are getting shorter and shorter. close to a month now. There is no actual profitability not because the price isn’t higher than cost of ingredients, but because they don’t count throwing away the ice cream mixer, and factory every month, when they should if replacing them is part of the process.

        • Not_mikey@lemmy.dbzer0.com
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          Training is not needed to run inference on the existing models, it’s needed to make new models. If LLMs plateau and there’s no use in training new models, or the government regulates them and they can’t train new frontier models, then they can still run inference on the currently existing models and make a profit.

          This is more like making a profit for making ice cream but losing a bunch of money researching new recipes for ice cream. If you decide the recipe is good enough and stop doing that research you can still make money making and selling ice cream.

          • Jhex@lemmy.world
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            2 months ago

            yeah? so a model trained in 2 year old data is just as good? as a model trained today?

            If you decide the recipe is good enough and stop doing that research you can still make money making and selling ice cream.

            So they are just choosing to lose money? they have a perfectly good, profitable product but they choose to lose money… ok bud

            Your point only makes sense if we agree the current models are still not good enough to make a profitable product and thus, they need to keep pushing

            • Not_mikey@lemmy.dbzer0.com
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              2 months ago

              so a model trained in 2 year old data is just as good? as a model trained today?

              Yes, assuming a plateau in LLM capability the only reason you’d train on an updated corpus is to get fresh info. That’s not worth it because:

              1. The model will most likely be wrapped in a harness that has search capabilities, so it can use that to fetch fresh info
              2. 2 year old data may actually be better as the Internet becomes increasingly tainted with LLM content

              Most of the improvement from new models isn’t coming from expanding or updating the corpus, its coming from increasing the parameter size and reinforcement learning.

              So they are just choosing to lose money?

              No, they are competing. If open AI decides to stop training new models right now then anthropic will and take all there business as the switching cost for models is low. That’s why they want the government to regulate it, so they can have a ceasefire to start taking in profits from inference without worrying about their competitor making a new better model and eating there lunch.

              • Jhex@lemmy.world
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                2 months ago

                if that were true, and the current models were actually good, there would be wide adoption of the current models while people wait for the next leap… instead, you get glimpses of the terrible numbers like 3% of user base is actually paying for these things

                maybe we torture our analogies to death but you make it sound like they have the formula for coca cola but instead of selling that, they are burning cash trying to find an even better formula

                when the reality is that they have something that is technically drinkable and not officially poison and they are selling it like the next elixir of life (while they burn cash trying to catch up to their own hype)

                • Not_mikey@lemmy.dbzer0.com
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                  People are adopting the current models, mostly coders right now. Most people using LLMs are using them for basic information search, ie. Google AI overviews. Those tasks don’t require the top models and don’t burn that many tokens so the companies keep them free to get the public exposed to AI.

                  Then there’s the 3% of people who are the power users using it for work, especially coders. For productivity the top models do perform better and the stakes are higher so they need to perform better. The top models aren’t needed for every task, but they shine as an orchestrator of smaller models handling more basic tasks. Coding also requires a lot more tokens, to read all the existing code; to do “thinking” which generates a bunch of output tokens to imitate reasoning; then to generate the code itself; then to review it, adjust after a review…

                  All of that equates to large bills for token spend to anthropic or open AI. My Claude bill on my company account is approaching $2,000 this month, and that’s about average / what’s expected from an engineer at my company. I’d bet that every engineer in silicon valley is burning through a similar amount as well.

                  This is why both open AI and anthropic are both seeing extremely high revenue growth. Anthropic ended 2025 with $9b in revenue , they are now on track to hit $100b revenue this year, for reference / the analogy coca cola made $47b this year, it’s a larger revenue then every other software company except Microsoft. THAT IS INSANE, no company has ever seen that kind of growth. Yes it’s being weighed down by training costs so they aren’t profitable but if they even double there revenue next year that could change.