> "These companies' revenues aren't emerging from nothing. People aren't paying them billions unless there is value in the product."
Oh, of course not. Just like people weren't paying vast sums of money for beanie babies and dotcoms in the late 1990s and mortgage CDOs in the late 2000s [EDIT] unless there was value in the product.
Those are fundamentally different. If people on this site really can't tell the difference then it makes sense why people on HN assume AI is a bubble.
People paid a lot for beanie babies and various speculative securities on the assumption that they could be sold for more in the future. They were assets people aimed to resell at a profit. They had no value by themselves.
The source of revenue for AI companies has inherent value but is not a resell-able asset. You can't resell API calls you buy from an AI company at some indefinite later date. There is no "market" for reselling anything you purchase from a company that offers use of a web app and API calls.
The central issue here is whether the money pouring into AI companies is producing anything other than more AI companies.
I think the article's premise is basically correct - if we had a 10x explosion of productivity where is the evidence? I would think some is potentially hidden in corporate / internal apps but despite everyone at my current employer using these tools we don't seem to be going any faster.
I will admit that my initial thoughts on Copilot were that "yes this is faster" but that was back when I was only using it for rote / boilerplate work. I've not had a lot of success trying to get it to do higher level work and that's also the experience of my co-workers.
I can certainly see why a particular subset of programmers find the tools particularly compelling, if their job was producing boilerplate then AI is perfect.
Yeah AI code is ideal for boilerplate, converting between languages, basically anything where the success criteria are definite. I don’t think there is a 10x productivity upgrade across the board, but in limited domains, yes, AI can produce human level work 10x faster.
The fundamental difference of opinion people have here though is some people see current AI capabilities as a floor, while others see it as a ceiling. I’d agree with arguments that AI companies are overvalued if current models are as capable as AI will ever be for the rest of time, but clearly that is not the case, and very likely, as they have been every few months over the past few years, they will keep getting better.
Oh, of course not. Just like people weren't paying vast sums of money for beanie babies and dotcoms in the late 1990s and mortgage CDOs in the late 2000s [EDIT] unless there was value in the product.