How much revenue is needed to justify the current AI spend?

Re:How much revenue is needed to justify the current AI spend? by jsnell on Sunday October 12, 2025 @06:14PM (#45562492)

There are multiple ways to do the computation. All of them will show LLMs having unit economics that are at least an order of magnitude better than search engines for the search engine use case[0]. Not multiple orders of magnitude worse like you claim. You're off by at least three orders of magnitude.

Ad-supported LLM Chatbots will be one of the most lucrative businesses ever.

[0] https://www.snellman.net/blog/archive/2025-06-02-llms-are-ch...

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Re:How much revenue is needed to justify the current AI spend? by N70Phone on Monday October 13, 2025 @10:21PM (#45575585)

Read the comments earlier in the thread. To quote myself.

> To make ChatGPT work as a search engine requires all the infrastructure of a search engine. Ipso-facto they are always more expensive than a standalone search engine.

These LLM search products run a search engine query in the background.

As for your source, I will call you out on one thing:

> First, there's not that much motive to gain API market share with unsustainably cheap prices.

The motive would be the hundreds of billions in deals that OpenAI has been making off the back of their marketshare.

I see this site is still Retard News.

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