Re:Is the A.I. Boom Turning Into an A.I. Bubble?
by justcallmejm on Tuesday August 12, 2025 @03:10PM
(#44880593)
"In the A.I. economy, it seems possible that many of the rewards will go to top firms that can afford to build and maintain large A.I. models..."
This is a flawed (and common, still, somehow!) idea of where value is within AI. The gigantic models are commoditizing rapidly. They practically incinerate cash.
There is real value being created at the layer where users can use a product they can actually trust. LLMs are certainly not that.
Our system, Aloe, is model agnostic - so when next month's model comes out we just get better. And we already beat the pants off the frontier models in capability, spending a tiny fraction of a percent of the capital to build the system.
The existing concentration of capital into big LLM companies is indeed a bubble. Eventually some of those VCs will wake up and invest where the value is being created, I presume.
This is a flawed (and common, still, somehow!) idea of where value is within AI. The gigantic models are commoditizing rapidly. They practically incinerate cash.
There is real value being created at the layer where users can use a product they can actually trust. LLMs are certainly not that.
Our system, Aloe, is model agnostic - so when next month's model comes out we just get better. And we already beat the pants off the frontier models in capability, spending a tiny fraction of a percent of the capital to build the system.
The existing concentration of capital into big LLM companies is indeed a bubble. Eventually some of those VCs will wake up and invest where the value is being created, I presume.