Microsoft’s 3 billion bet on Copilot is assessed to be a disaster

[SAguy]

Mnementh said:

sc94597 said:

I remember 5 years ago, during the pandemic, there were many predictions that there would be a collapse in delivery apps, because all of the delivery apps weren't making profits. Many industry analysts suggested that these companies would never become profitable and that it was impossible given the high operational costs.

Roughly around 2023-2024 they became profitable. 

This is a common trend in the tech industry. Companies make large losses over time, and then a decade or two out they start making large profits. 

Compute costs are going to decrease over time as infrastructure is built out and currently nascent technologies (high bandwidth memory and networking, photonics, etc) mature. 

I remember the dot.com crash and a certain company that had always written losses up to that point, even increasing them. But then, in the crisis they started making winnings. That was Amazon. I think that is the pattern: we will have quite a lot of companies that go bankrupt or are bought out, but a few winners.

And yes, one way or another profitability will come. Either by cost reduction or by milking customers (preferably company customers)... or both. At which point we level out is the question though, what will the tech look like?

I'm not going to argue ai, but what the two of you have suggested is marksman fallacy. Also Amazon was actually profitable pretty early on in its business life it just choose to reinvest all it's earnings into the cloud and retail. As for uber they operated in a zero interest environment and thus faced lower financing costs then the current AI companies. Their not good examples either as Uber raised $20 bill and Amazon lost $5billion which is much less then most AI companies.