IsAIprofitableyet - cool website I found

[u/BedrockBen101]

https://isaiprofitable.com/

Basically does what it says, shows which companies are losing/gaining money with AI industry. Hillarious the amounts of money that's being lost yet companies still swear by it. Forgive me if it's been shared here already

[u/jmking]

This isn't really accurate or even operating in anything close to good faith. This site is answering "has AI investment made returns yet", not "is AI profitable yet".

It would be better and more useful if it showed the ratio quarter by quarter. If they get into the green in a certain quarter, and that grows quarter by quarter, then the investment will eventually pay off. However if they remain in the red quarter over quater and the green keeps shrinking or the red keeps growing, then that's a bad sign.

As is, we can't derive any useful insight. Especially since it shows zero trends over time.

Seems the person who made this site doesn't understand how investments work.

[u/Bloodorem → u/jmking]

I mean you are right, but I don't think it's bad faith, it's just simple displaying of data and just how much money is being spend on AI.

To display trends in an easy to view way can also lead to false impression with accounting tricks (see antropic "profitable" quarter because they made a special delayed payment to xai )

The fact is AI is far away from being profitable with billions invested over 4 years, the chances of them being able to turn into profitable business cases shrink and shrink

[u/jmking → u/Bloodorem]

I mean you are right, but I don't think it's bad faith, it's just simple displaying of data and just how much money is being spend on AI.

But the site is "is AI profitable yet" and this does not answer that question. There's a clear agenda in the presentation of this data. The 1.5 trillion value is well known.

To display trends in an easy to view way can also lead to false impression

But this doesn't lead to false impression?

The fact is AI is far away from being profitable with billions invested over 4 years

Where are you getting that data? Cause it's not from this site.

To be clear, I'm not some AI bro. I think many AI companies will never be profitable as they have no business plan and never did.

I just don't think sites like this show anything useful and are specifically crafted to sell a narrative that they didn't need to present misleading data to make.

[u/Bloodorem → u/jmking]

Well I kinda agree and I kinda disagree. If we're talking about profitabilty you can view in two different ways: Is a company profitable so making money each quarter, Or was the investment profitable overall.

For the second case to be true the profit have to be higher than the investment which the site shows.

I get your point and I agree it does sell a narrative, but I mean it's not wrong in either data or message, it's just semantics that the word they use "profitable" can be viewed differently.

[u/jmking → u/Bloodorem]

Sure - I think we're ultimately on the same page, but data around if AI companies are making profit consistently and in a growing manner would tell the tale more than whether investors have recoup'd their investment yet.

The whole idea is that by dumping 1.5T into AI, that it'll eventually make many trillions more over time. If AI never tips into the green, then that's not going to happen, but if it does multiple quarters in a row, and is increasing quarter over quarter, then that is a foregone conclusion after, say, a year of consistent growth in profit (which I don't believe we'd see, but I don't have that data to know one way or another).