AI versus Marshy - AI investment versus profit.

AI investment versus profit. Via Business Insider and Fortune 500 . I’m not a financial expert and my eyes tend to glaze over whenever someone talks stock, but last week was weird in AI and tech land. Things dropped for Alphabet (formerly Google), Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla at once with $600m being wiped off at peak. Poor guy next to the dark computers always looks stressed. Source: Business InsiderThere’s many reasons why this could have happened, and it looks like they’re on their way to recovering now. Moving on the up (maybe)But the reason I’m interest in the most is that these tools aren’t really making money yet. So far, there’s been an eye-watering $1T spent on AI infrastructure by big technology companies to ensure they’re prepared for what’s to come. The challenge however - is that Generative AI isn’t making these companies money. Business Insider shared an amusing coverage about a pharmacy CIO (chief information officer) cancelling their $180,000 AI tool subscriptions (paywalled). ​ Really just do not see the value 😬Why pay double for something that’s sh*t? There’s an indomitable belief from these leaders that this will eventually be solved. But there’s another big issue that this level of data centre creation unloads - which is impact on the environment via inordinate amounts of energy and water consumption. Originally appeared in newsletter: AI versus Marshy 58 - making money, stealing power, and switching apps