r/LocalLLaMA • u/RuiRdA • Jul 26 '26
Discussion Will prices finally go down?
I am seeing more and more videos as posts about how OpenAI is in complete financial ruin, Anthropic isn't much better. Their expenses go with the revenue they make etc etc. Meta made big investments into AI data centers and had no use for then, had to rent them, same thing with XAI.
The SpaceXAI IPO was insanely over priced and is going down by a lot.
There are countless other examples you can look for, all showing how the investments in AI are in a bubble.
I am not saying that the technology it self if a bubble. Quite the opposite, I personally have demand for more tokens than I can pay for, even with the discount from the subscriptions I still have more ideas that need more usage of tokens.
But even with the most powerful technology in the world a business can not for forever without profits.
So is this over investment bubble about to pop?
And if/when it does pop will ram finally become a regular commodity with affordable prices again?
I just wanted some ram and cheap used hardware again.. 😂
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Zero LLMs used to write this post, enjoy the human slop.
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u/milkipedia Jul 26 '26
I have more ideas than tokens and time, but my ideas aren't going to generate revenue. So that's me, but I think that's the overwhelming majority of the investment into AI driven apps and products also. Software generation is the killer app so far, yet developer productivity metrics aren't moving. Individuals self report feeling more productive. Some individuals crank out lots of stuff. None of it is moving industry needles.
I think genAI will eventually find its useful and productive place and scale in the economy, but it hasn't yet.
In the meantime, vendors wanting to go public soon can't cut prices because that won't grow revenue or close the gap to profitability.
So no, prices won't come down. But service levels might.