Thats not investing - firms are paying out to llm producers in the form of operating expenses. What asset are they acquiring that deems it to be a investment? lmao
Laying people off offsets some of those expenses. Eventually revenue has to climb.
The reality is many of these tech firms have reached the peak of what they can offer - Meta and Google still have some ways to go with existing assets pre-LLMs that can generate lots more cash flows. So the sobering truth eventually will be that this tool seems really great but its not going to make the firm seem more productive in terms of its financials, beyond efficiency-generated growth which is finite.
And whether you like it or not, thats the only thing that matters. The firm exists to maximize wealth of its stockholders.
If I skip 2 models of iPhone upgrades, there is definitely a difference between how the thing feels - and it feels its worth the money.
If I skip 2 models of upgrades of the frontier models now, I highly doubt I can discern what the difference is and what exactly I'd be paying more for.
Ofc they have hit a ceiling, why do you think OAI has shut down many of its projects like the research one called Prism?
The reality is both Anthropic and OAI have converged on LLMs as being a thing for software production - that's where the majority of their revenue is coming from.
Laying people off offsets some of those expenses. Eventually revenue has to climb.
The reality is many of these tech firms have reached the peak of what they can offer - Meta and Google still have some ways to go with existing assets pre-LLMs that can generate lots more cash flows. So the sobering truth eventually will be that this tool seems really great but its not going to make the firm seem more productive in terms of its financials, beyond efficiency-generated growth which is finite.
And whether you like it or not, thats the only thing that matters. The firm exists to maximize wealth of its stockholders.